Calculating Covariance

Cigarettes
(X)
0

dX

dXdY

dY

10

+9

Lung
Capacity (Y)
45

+6

42

10

33

15

+5

31

20

+10

29

215

Calculating Covariance
So we obtain

S xy

1
( 215) 53.75
4

Computational Formula for

Correlation
By substituting and rearranging, you
obtain a substantial (and not very
rxy
transparent) formula for
rxy

N XY X Y

N X 2 X 2

N Y Y

Computing a correlation
Cigarettes
(X)

0
5
10
15
20
50

X2
0
25
100
225
400
750

XY
0
210
330
465
580
1585

Y2
2025
1764
1089
961
841
6680

Lung
Capacity
(Y)

45
42
33
31
29
180

Computing a Correlation
rxy

(5)(1585) (50)(180)
(5)(750) 50

(5)(6680) 180

7925 9000

(3750 2500)(33400 32400)

1075

1250 (1000)

.9615