PEARSON PRODUCT-MOMENT CORRELATION COEFFICIENT

Pearson Product-Moment Correlation CoeIIicient is a measure oI the linear dependence

between two variables X and Y.

CHARACTERISTICS OF THE PEARSON PRODUCT-MOMENT CORRELATION
COEFFICIENT
O I larger values oI X and Y tend to be paired with larger values oI Y, the measure oI
correlation should be positive and approach 1 as tendency becomes more pronounced.
n this case, X and Y is called a direct relationship.
O I small values oI X tend to be paired with large values oI Y, the measure oI
correlation should be negative and should approach -1 as the tendency becomes more
pronounced. This is an independent relationship.
O I large values oI X seem just as likely to be paired with small values oI Y, the
measure oI correlation should be close to zero. When X and Y are independent, the
measure oI correlation should be zero. n this case, X and Y are not related or
independent

ASSUMPTIONS
O The variables must be either interval or ratio measurements
O The variables must be approximately normally distributed
O There is a linear relationship between the two variables.
O utliers are either kept to a minimum or are removed entirely because outliers can
have a very large eIIect on the line oI best Iit and the Pearson correlation coeIIicient,
which can lead to very diIIerent conclusions regarding the data.
O There is homoscedasticity oI the data. Homoscedasticity basically means that the
variances along the line oI best Iit remain similar as moving along the line.




EXAMPLE
survey conducted in order to identiIy the relation between people`s height and weight.
researcher claims that on average when height is increases, the weight too will increase.
Height is measured in centimeter (cm). Weight is measured in kilogram (kg). Data on the
table below shows inIormation on twenty individuals at u0.05. Test the hypotheses that
there is relation between height and weight.
PERSON HEIGHT (in
centimeter)
WEIGHT (in kilogram)
1 162 57
2 160 70
3 156 65
4 164 60
5 149 37
6 164 52
7 150 42
8 156 65
9 162 60
10 158 52
11 155 48
12 162 50
13 160 53
14 156 52
15 158 57
16 152 55
17 172 51
18 168 65
19 157 54
20 160 60
Step 1: Hypotheses
H
0
: There is no relation between height and weight (0)
H
1
: There is relation between height and weight (=0) (claim)

X Y XY X
2
Y
2

162 57 9234 26244 3249
160 70 11200 25600 4900
156 65 10140 24336 4225
164 60 9840 26896 3600
149 37 5513 22201 1369
164 52 8528 26896 2704
150 42 6300 22500 1764
156 65 10140 24336 4225
162 60 9720 26244 3600
158 52 8216 24964 2704
155 48 7440 24025 2304
162 50 8100 26244 2500
160 53 8480 25600 2809
156 52 8112 24336 2704
158 57 9006 24964 3249
152 55 8360 23104 3025
172 51 8772 29584 2601
168 65 10920 28224 4225
157 54 8478 24649 2916
160 60 9600 25600 3600


c X 3181, cY 1105
cXY 176099, c X
2
506547 c Y
2
62273

r
20 (176099)- (3181)(1105)
|20(506547)- 3181
2
]|20(62273)- 1105
2
]

0.4043

Step 2: Test statistic
t r
-2
1-
2

0.4043
20-2
1-0.4043
2

1.875


Step 3 : Critical Value
rom the table, since u 0.05, d.I 18, the critical value are t 2.10 and t -2.10.


Step 4 : Decision
Since 1.875 2.10, do not reject the null hypothesis.


Step 5 : Conclusion
So, there is not enough evidence to support the claim that there is relation between height and
weight.


y using Minitab:

rom the output we get Irom the minitab soItware, we can see that the correlation