Correlation 180511133644
Correlation 180511133644
Correlation 180511133644
It does not say anything about the cause and effect relationship between the
two variables.
SIGNIFICANCE OF CORRELATION
It is used to determine the relationship between two variables.
It helps us to estimate the value of dependent variable for the given value of
independent variable.
TYPES OF CORRELATION
Correlation is described or classified in several different ways such as:
1. Positive and Negative Correlation: Whether correlation is positive (direct) or negative
(inverse) would depend upon the direction of change of the variables. If both the variables
are varying in the same direction i.e., if as one variable is increasing the other, on an
average is also increasing or, if as one variable is decreasing the other, on an average, is
also decreasing, correlation is said to be positive.
If on the other hand, the variable are varying in positive direction, i.e. as one variable is
increasing the other is decreasing or vise versa, and correlation is said to be negative.
2. Liner and Curvilinear (Non-Linear) Correlation.
Linear Correlation: Correlation is said to be linear when the amount of change in one
variable tends to bear a constant ratio to the amount of change in the other.
Non-Linear Correlation: The correlation would be non-linear if the amount of change in one
variable does not bear a constant ratio to the amount of change in the other variable.
METHODS OF STUDYING CORRELATION
Correlation can be studied by any of the following method.
Exact degree of
correlation between
It is easy to the two variables can
understand not be established
by applying this
method.
Karl Pearson’s Coefficient of Correlation
It is used universally for describing the degree of correlation between two series .
Formula of computing Pearson’s r is:
Here, x = ( X- X ) ; y= ( Y- Y )
Sx = Standard deviation of x series
Sy = Standard deviation of y series
N = Number of pairs of observation
Modified version:
Where, x = ( X- X ) ; y= ( Y- Y )
Procedure for computing the correlation coefficient
Calculate the mean of the two series ‘x’ &’y’
Calculate the deviations ‘x’ &’y’ in two series from their respective mean.
Square each deviation of ‘x’ &’y’ then obtain the sum of the squared deviation
i.e.
Multiply each deviation under x with each deviation under y & obtain the product of ‘xy’.
Then obtain the sum of the product of x , y i.e. Σxy
:
Merit of Demerit
Karl of Karl
Pearson’s Pearson’s The computational
Method Method procedure of this
It is most method is difficult
important and as compared to
precise other method.
method of
measuring the
relationship of
two variables. The value of the
coefficient is
affected by
extreme items.
It measures the
direction as
well as the
relationship
between the
two variables.