Correlation Coefficient

How well does your regression equation truly represent your set of data? One of the ways to determine the answer to this question is to exam the correlation coefficient and the coefficient of determination.
The correlation coefficient, r, and the coefficient of determination, r 2 , will appear on the screen that shows the regression equation information
(be sure the Diagnostics are turned on --2nd Catalog (above 0), arrow down to DiagnosticOn, press ENTER twice.)

In addition to appearing with the regression information, the values r and r 2 can be found under VARS, #5 Statistics EQ #7 r and #8 r 2 .

Correlation Coefficient, r :
The quantity r, called the linear correlation coefficient, measures the strength and the direction of a linear relationship between two variables. The linear correlation
coefficient is sometimes referred to as the Pearson product moment correlation coefficient in honor of its developer Karl Pearson.

The mathematical formula for computing r is:

where n is the number of pairs of data. (Aren't you glad you have a graphing calculator that computes this formula?) The value of r is such that -1 < r < +1. The + and signs are used for positive linear correlations and negative linear correlations, respectively. Positive correlation: If x and y have a strong positive linear correlation, r is

close to +1. An r value of exactly +1 indicates a perfect positive fit. Positive values indicate a relationship between x and y variables such that as values for x increases, values for y also increase. Negative correlation: If x and y have a strong negative linear correlation, r is close to -1. An r value of exactly -1 indicates a perfect negative fit. Negative values indicate a relationship between x and y such that as values for x increase, values for y decrease. No correlation: If there is no linear correlation or a weak linear correlation, r is close to 0. A value near zero means that there is a random, nonlinear relationship between the two variables Note that r is a dimensionless quantity; that is, it does not depend on the units employed. A perfect correlation of 1 occurs only when the data points all lie exactly on a straight line. If r = +1, the slope of this line is positive. If r = -1, the slope of this line is negative. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally described as weak. These values can vary based upon the "type" of data being examined. A study utilizing scientific data may require a stronger correlation than a study using social science data.

Coefficient of Determination, r 2 or R2 :
The coefficient of determination, r 2, is useful because it gives the proportion of the variance (fluctuation) of one variable that is predictable from the other variable. It is a measure that allows us to determine how certain one can be in making predictions from a certain model/graph. The coefficient of determination is the ratio of the explained variation to the total variation. The coefficient of determination is such that 0 < r 2 < 1, and denotes the strength of the linear association between x and y.

The coefficient of determination represents the percent of the data that is the closest to the line of best fit. For example, if r = 0.922, then r 2 = 0.850, which means that 85% of the total variation in y can be explained by the linear relationship between x and y (as described by the regression equation). The other 15% of the total variation in y remains unexplained. The coefficient of determination is a measure of how well the regression line represents the data. If the regression line passes exactly through every point on the scatter plot, it would be able to explain all of the variation. The further the line is away from the points, the less it is able to explain.

Pearson's Product-Moment Correlation using SPSS

Introduction
The Pearson product-moment correlation coefficient (Pearsons correlation, for short) is a measure of the strength and direction of association that exists between two variables measured on at least an interval scale. For example, you could use a Pearsons correlation to understand whether there is an association between exam performance and time spent revising; whether there is an association between depression and length of unemployment; and so forth. A Pearsons correlation attempts to draw a line of best fit through the data of two variables, and the Pearson correlation coefficient, r, indicates how far away all these data points are to this line of best fit (i.e., how well the data points fit this new model/line of best fit). You can learn more here, which we recommend if you are not familiar with this test. This "quick start" guide shows you how to carry out a Pearson's correlation using SPSS, as well as interpret and report the results from this test. However, before we introduce you to this procedure, you need to understand

the different assumptions that your data must meet in order for a Pearson's correlation to give you a valid result. We discuss these assumptions next.

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Assumptions
When you choose to analyse your data using Pearsons correlation, part of the process involves checking to make sure that the data you want to analyse can actually be analysed using Pearsons correlation. You need to do this because it is only appropriate to use Pearsons correlation if your data "passes" four assumptions that are required for Pearsons correlation to give you a valid result. In practice, checking for these four assumptions just adds a little bit more time to your analysis, requiring you to click of few more buttons in SPSS when performing your analysis, as well as think a little bit more about your data, but it is not a difficult task. Before we introduce you to these four assumptions, do not be surprised if, when analysing your own data using SPSS, one or more of these assumptions is violated (i.e., is not met). This is not uncommon when working with real-world data rather than textbook examples, which often only show you how to carry out Pearsons correlation when everything goes well! However, dont worry. Even when your data fails certain assumptions, there is often a solution to overcome this. First, lets take a look at these four assumptions:
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Assumption #1: Your two variables should be measured at the interval or ratio level (i.e., they are continuous). Examples of variables that meet this criterion include revision time (measured in hours), intelligence (measured using IQ score), exam performance (measured from 0 to 100), weight (measured in kg), and so forth. You can learn more about interval and ratio variables in our article:Types of Variable. Assumption #2: There needs to be a linear relationship between the two variables. Whilst there are a number of ways to check whether a linear relationship exists between your two variables, we suggest creating a scatterplot

using SPSS, where you can plot the dependent variable against your independent variable, and then visually inspect the scatterplot to check for linearity. Your scatterplot may look something like one of the following:

If the relationship displayed in your scatterplot is not linear, you will have to either run a non-parametric equivalent to Pearsons correlation or transform your data, which you can do using SPSS. In our enhanced guides, we show you how to: (a) create a scatterplot to check for linearity when carrying out Pearsons correlation using SPSS; (b) interpret different scatterplot results; and (c) transform your data using SPSS if there is not a linear relationship between your two variables.
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Assumption #3: There should be no significant outliers. Outliers are simply single data points within your data that do not follow the usual pattern (e.g., in a study of 100 students IQ scores, where the mean score was 108 with only a small variation between students, one student had a score of 156, which is very unusual, and may even put her in the top 1% of IQ scores globally). The following scatterplots highlight the potential impact of outliers:

Pearsons r is sensitive to outliers, which can have a very large effect on the line of best fit and the Pearson correlation coefficient, leading to very difficult conclusions regarding your data. Therefore, it is best if there are no outliers or they are kept to a minimum. Fortunately, when using SPSS to run Pearsons correlation on your data, you can easily include criteria to help you detect possible outliers. In our enhanced Pearsons correlation guide, we: (a) show you how to detect outliers using "casewise diagnostics", which is a simple process when using SPSS; and (b) discuss some of the options you have in order to deal with outliers.
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Assumption #4: Your variables should be approximately normally distributed. In order to assess the statistical significance of the Pearson correlation, you need to have bivariate normality, but this assumption is difficult to assess, so a simpler method is more commonly used. This known as the Shapiro-Wilk test of normality, which is easily tested for using SPSS. In addition to showing you how to do this in our enhanced Pearsons correlation guide, we also explain what you can do if your data fails this assumption.

You can check assumptions #2, #3 and #4 using SPSS. We suggest testing these assumptions in this order because it represents an

order where, if a violation to the assumption is not correctable, you will no longer be able to use Pearsons correlation (although you may be able to run another statistical test on your data instead). Just remember that if you do not run the statistical tests on these assumptions correctly, the results you get when running a Pearson's correlation might not be valid. This is why we dedicate a number of sections of our enhanced Pearson's correlation guide to help you get this right. You can find out about our enhanced content as a whole here, or more specifically, learn how we help with testing assumptions here. In the section, Procedure, we illustrate the SPSS procedure to perform a Pearsons correlation assuming that no assumptions have been violated. First, we set out the example we use to explain the Pearsons correlation procedure in SPSS.