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Calculate the coefficient of correlation.

Estimate the equation that describe the

relationship between two variables, regression

analysis.

interval- or ratio-scale variables, we often start with

a scatter diagram. This procedure provides a visual

representation of the relationship between the

variables. The next step is usually to calculate the

correlation coefficient. It provides a quantitative

measure of the strength of the relationship

between two variables.

Copier Sales of America sells copiers to businesses of all sizes

throughout the United States and Canada. Ms. Marcy Bancer was

recently promoted to the position of national sales manager. She

would like to impress upon the attendance the importance of

making extra sales call each day. She selects a random sample of

10 sales representatives and determines the number of sales calls

they made last month and the number of copiers they sold.

What do you see from the

scha5er plot?

and which is dependent?

The following drawing summarizes the strength and direction

of correlation coefficient.

Examples:

Examples:

n: sample size

Sx: standard deviation of x

Sy: standard deviation of y

Example:

Roam for answer:

Regression
analysis

In regression analysis, our objective is to use the data to

position a line that best represents the relationship between

the two variables. Our first approach is to use a scatter

diagram to visually position the line.

Regression analysis

Regression equa-on

of the regression equation.

2. Predict the number of copiers sold at number of calls

equal 35.

Another example:

2.6

3.4

6.2

5.3

3.5

6.5

Score (y)

99

78

83

100

76

100

66

Linear

100

Positive

80

No outliers

60

40

20

r=

i =1

xi

yi

1.5

2.6

3.4

6.2

5.3

3.5

6.5

66

99

78

83

100

76

100

( xi x )( yi y )

(n 1) s x s y

29 602

x=

i =1 i

29

= = 4.14

7

y=

i =1 i

602

= 86

7

x = 4.14

r=

i =1

y = 86

xi

yi

1.5

2.6

3.4

6.2

5.3

3.5

6.5

66

99

78

83

100

76

100

( xi x )( yi y )

(n 1) s x s y

2 ( y y)2

(

y

y

)

( xi x ) i

( xi x )

i

29
602

7

sx =

i=1 ( xi x )

n 1

sy =

2

(

y

y

)

i=1 i

n 1

x = 4.14

r=

i =1

y = 86

(n 1) s x s y

2 ( y y)2

(

y

y

)

( xi x ) i

( xi x )

i

66
-2.64
-20

6.97

400

99
-1.54
13

2.37

169

78
-0.74

-8

0.55

64

83
2.06

-3

4.24

9

100
1.16

14

1.35

196

76
-0.64
-10

0.41

100

100
2.36

14

5.57

196

602

21.46

1134

yi

xi

1.5

2.6

3.4

6.2

5.3

3.5

6.5

29

sx =

( xi x )( yi y )

i=1 ( xi x )

n 1

21.46 = 1.89

=

7 1

sy =

2

(

y

y

)

i=1 i

n 1

1134

= 13.75

=

7 1

x = 4.14

r=

i =1

y = 86

xi

1.5

2.6

3.4

6.2

5.3

3.5

6.5

29

( xi x )( yi y )

(n 1) s x s y

2 ( y y)2

(

y

y

)

( xi x ) ( yi y )

( xi x ) i

( xi x )

i

66
-2.64
-20

6.97

400

99
-1.54
13

2.37

169

78
-0.74

-8

0.55

64

83
2.06

-3

4.24

9

100
1.16

14

1.35

196

76
-0.64
-10

0.41

100

100
2.36

14

5.57

196

602

21.46

1134

sx = 1.89

s y = 13.75

yi

x = 4.14

r=

i =1

y = 86

xi

1.5

2.6

3.4

6.2

5.3

3.5

6.5

29

( xi x )( yi y )

(n 1) s x s y

88.20

= 0.57

=

6 1.89 13.75

2 ( y y)2

(

y

y

)

( xi x ) ( yi y )

( xi x ) i

( xi x )

i

66
-2.64
-20

6.97

400

52.80

99
-1.54
13

2.37

169

-20.02

78
-0.74

-8

0.55

64

5.92

83
2.06

-3

4.24

9

-6.18

100
1.16

14

1.35

196

16.24

76
-0.64
-10

0.41

100

6.40

100
2.36

14

5.57

196

33.04

602

21.46

1134

88.20

sx = 1.89

s y = 13.75

yi

0.57

Positive

Linear

From scatter

plot

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