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Practice Problems

The document explains Pearson's sample correlation coefficient, detailing its formula, properties, and interpretation of values. It provides examples of calculating the correlation coefficient between various pairs of variables, such as age and height, and the number of people on a project versus the days taken to complete it. Additionally, it includes practice problems for further understanding of the concept.

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John Denver
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11 views23 pages

Practice Problems

The document explains Pearson's sample correlation coefficient, detailing its formula, properties, and interpretation of values. It provides examples of calculating the correlation coefficient between various pairs of variables, such as age and height, and the number of people on a project versus the days taken to complete it. Additionally, it includes practice problems for further understanding of the concept.

Uploaded by

John Denver
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Practice Problems

Pearson’s Sample Correlation Coefficient


1 Let and be variables. The Pearson’s sample correlation coefficient (or
simply correlation coefficient or Pearson’s ) is given by

where
= number of paired observations;
= sum of products of paired and values;
= sum of squared values;
= sum of squared values;
= sum of values; and
= sum of values.
Properties:

● The correlation coefficient satisfies ; that is, is neither


greater than nor less than .
Properties:

● The sign of the correlation coefficient indicates the


type of relationship between two variables. A positive
value indicates a positive relationship; a negative
value indicates a negative relationship. indicates a
perfect positive relationship. In contrast, indicates a
perfect negative correlation. If , then there is no
correlation between two variables.
Properties:

● In terms of the degree or strength, the closer the


absolute value of to , the greater the strength of
correlation. On the other hand, the closer the absolute
value of to , the weaker the strength of correlation. To
interpret the value of the correlation coefficient , the
following interpretation scale is proposed.
Correlation Coefficient Qualitative
Interpretation
Perfect
Very high
Moderately high
Moderately low
Very low
No correlation
Example:

Consider the two variables and , and assume that they


are both in ratio level.

1 3
2 6
3 9
4 12
5 15
Let’s compute for the Pearson’s of and . We obtain
, , , , and . Substitute these values into the formula for .
Thus, the Pearson’s sample correlation coefficient of the
two variables is . Note that there is no unit associated
with , and its value is unchanged if the and values are
switched.

Thus, we conclude that there is a very high positive


correlation between the variables and .
Example 1: The following table shows the age and
height (in cm) of five students. Determine the
correlation coefficient between the two variables.

Child Age Height


A 11 140
B 13 146
C 14 152
D 15 155
E 17 160
Solution:
1. Construct the following table.

A 11 140
B 13 146
C 14 152
D 15 155
E 17 160
Solution:
2. Calculate the values required in each column.

A 11 140 121 19 600 1 540


B 13 146 169 21 316 1 898
C 14 152 196 23 104 2 128
D 15 155 225 24 025 2 325
E 17 160 289 25 600 2 720
Solution:
3. Calculate the sum of the entries in each column to
obtain , , , , and .

A 11 140 121 19 600 1 540


B 13 146 169 21 316 1 898
C 14 152 196 23 104 2 128
D 15 155 225 24 025 2 325
E 17 160 289 25 600 2 720
Solution:
4. Substitute the necessary values into the formula.

Thus, . This means that there is a very high positive


correlation between the age and height of the students.
Example 2: A human resource officer wants to find out
if there is a relationship between the number of people
working in a project and the number of days it takes to
finish the project. He randomly selects 8 past projects
that the company has finished as shown. Using the data,
calculate the correlation coefficient between the two
variables. Then, interpret the result.
Proje No. of No. of
ct People Days
A 10 35
B 12 29
C 9 47
D 15 20
E 8 63
F 16 21
G 11 30
H 13 26
Solution:
1. Complete the following table.

A 10 35 100 1 225 350


B 12 29 144 841 348
C 9 47 81 2 209 423
D 15 20 225 400 300
E 8 63 64 3 969 504
F 16 21 256 441 336
G 11 30 121 900 330
H 13 26 169 676 338
Solution:
2. Substitute the necessary values into the formula.
Solution:

Thus, , which means that there is a very high negative


correlation between the number of people working on
a project and the number of days it takes to finish the
project.
Individual Practice:

1. The following table shows the number of absences


and final grade of five students in mathematics.
Determine the correlation coefficient between the
two variables.
Student No. of Absences Final Grade
A 1 94
B 2 92
C 4 90
D 5 87
E 6 80
Individual Practice: Applicant
Typing No. of
2. A company manager gave a Speed errors
test to 10 job applicants for the A 33 5
position of typist. He wants to B 45 10
know if there is a relationship C 40 7
between typing speed (in words D 39 7
per minute) and number of E 26 4
errors committed by the F 41 8
applicants. Using the given G 49 9
data, calculate the correlation H 37 4
coefficient between the two I 35 6
variables. Then, interpret the
J 30 3
result.
Responde Efficiency
Group Practice: This should be
nt Age Grade
A 21 93
done in groups of four.
B 26 91
C 38 87
D 34 87
A human resource officer is
E 27 90
studying the relationship between
F 32 86
the age of employees in the
company and their efficiency G 42 93
H 31 94
I 26 97
grade (0-100). He randomly

J 29 95
selects 12 employees. Using the
K 24 98
given data, calculate the
L 30 94
correlation coefficient between
the two variables. Then, interpret
the result.
Pearson’s Sample Correlation Coefficient
1 Let and be variables. The Pearson’s sample correlation coefficient (or
simply correlation coefficient or Pearson’s ) is given by

where
= number of paired observations;
= sum of products of paired and values;
= sum of squared values;
= sum of squared values;
= sum of values; and
= sum of values.

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