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Correlation will always between -1.0 and +1.0. If the correlation is positive, we have

a positive relationship. If it is negative, the relationship is negative.

Formula:

Correlation Co-efficient :

Correlation(r) =[ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])]

where

N = Number of values or elements

X = First Score

Y = Second Score

ΣXY = Sum of the product of first and Second Scores

ΣX = Sum of First Scores

ΣY = Sum of Second Scores

ΣX2 = Sum of square First Scores

ΣY2 = Sum of square Second Scores

X Values Y Values

60 3.1

61 3.6

62 3.8

63 4

4.1

65

N=5

See the below table

X Y

X*Y X*X Y*Y

Value Value

60 * 3.1 = 60 * 60 = 3.1 * 3.1 =

60 3.1

186 3600 9.61

61 * 3.6 = 61 * 61 = 3.6 * 3.6 =

61 3.6

219.6 3721 12.96

62 * 3.8 = 62 * 62 = 3.8 * 3.8 =

62 3.8

235.6 3844 14.44

63 * 63 =

63 4 63 * 4 = 252 4 * 4 = 16

3969

65 4.1 65 * 4.1 = 65 * 65 = 4.1 * 4.1 =

16.81

266.5 4225

ΣX = 311

ΣY = 18.6

ΣXY = 1159.7

ΣX2 = 19359

ΣY2 = 69.82

Correlation(r) =[ NΣXY - (ΣX)(ΣY) / Sqrt([NΣX2 - (ΣX)2][NΣY2 - (ΣY)2])]

= ((5)*(1159.7)-(311)*(18.6))/sqrt([(5)*(19359)-(311)2]*[(5)*(69.82)-

2

(18.6) ])

= (5798.5 - 5784.6)/sqrt([96795 - 96721]*[349.1 - 345.96])

= 13.9/sqrt(74*3.14)

= 13.9/sqrt(232.36)

= 13.9/15.24336

= 0.9119

This example will guide you to find the relationship between two variables by

calculating the Correlation Co-efficient from the above steps.

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