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# Correlation Analysis

(Testing if One Variable is Correlated with another Variable)

Curriculum Instruction Educational Technology Research

Introduction
• Correlation analysis is common in research.
• For example, previous researches used correlation analysis
to investigate the relationship between

 Teacher quality and student success
 Crime rate and employment rate
 Product quality and customer satisfaction
 Salary and job satisfaction
Curriculum Instruction Educational Technology Research

no causal effect is implied. Analysis of the relationships among variables is called Correlation Analysis. Curriculum Instruction Educational Technology Research .  Scatter plot (or scatter diagram) can be used to show the relationship between two numerical variables. It is only concerned with the strength and direction (whether positive or negative) of the relationship.  Correlation coefficient is used to measure the direction and strength of the linear relationship between variables. It includes the measurement of the correlation between the variables.

Y) r Var (X)Var (Y) where: X and Y are variables under consideration.Pearson Correlation: Formula Cov(X. where: X and Y are variables under consideration. Pearson Correlation is also called “Pearson r” or “r”) Curriculum Instruction Educational Technology Research .

Curriculum Instruction Educational Technology Research .The Values of Pearson r • Unit free • Pearson r ranges from -1 to +1 -1 0 +1 • Positive and negative signs indicate the direction of the relationship.

Positive r • The value of r is Scatter Plot Showing the Relationship Between X and Y positive if the values of X and Y go in the same 6 direction 4 Example: Y 2 X = Score in BEE Math Y = Score in BEE English 0 0 1 2 3 4 5 6 X Curriculum Instruction Educational Technology Research .

Negative r • The value of r is Scatter Plot Showing the Relationship negative if the values Between X and Y of X and Y go in 6 opposite direction 4 Example: Y 2 X = Employment Rate Y = Crime rate 0 0 1 2 3 4 5 6 X Curriculum Instruction Educational Technology Research .

Curriculum Instruction Educational Technology Research . – The closer to 1. Absolute value of r The absolute value of r indicates the strength of the linear relationship.0 the stronger the linear relationship – The closer to zero the weaker the linear relationship.

Sample Data with r =1.0 Data set A Scatter Plot of Data set A X Y with its Estimated Line (r=+1.0) 1 2 10 2 4 8 6 Y 3 6 4 2 4 8 0 0 1 2 3 4 5 6 5 10 X Curriculum Instruction Educational Technology Research .

0 0 0 1 2 3 4 5 6 X 5 9.99) 1 2.0 2 4 7.Sample Data with r close to 1.0 Data set B Scatter Plot of Data set B X Y with its Estimated Line (r = +0.5 10 8 2 3.0 Curriculum Instruction Educational Technology Research .5 6 Y 4 3 5.

Sample Data with r = -1.0) 1 10 10 8 2 8 6 Y 4 3 6 2 4 4 0 0 1 2 3 4 5 6 5 2 X Curriculum Instruction Educational Technology Research .0 Data set C Scatter Plot of Data set C X Y with its Estimated Line (r = -1.

96) 1 9 10 8 2 6.Sample Data with r close to -1.9 4 2 4 3 0 0 1 2 3 4 5 6 5 1 X Curriculum Instruction Educational Technology Research .5 6 Y 3 6.0 Data set D Scatter Plot of Data set D X Y with its Estimated Line (r = -0.

Sample Data with r close to 0 Data set E Scatter Plot of Data set E with its Estimated Line X Y (r = 0.04) 1 1 10 8 2 10 6 Y 3 7 4 2 4 9 0 0 1 2 3 4 5 6 5 2 X Curriculum Instruction Educational Technology Research .

6 r=0 Y Y X X r = +1 r = +.3 Curriculum Instruction Educational Technology Research . More on Scatter Plots Y Y Y X X X r = -1 r = -.

20 ..html Curriculum Instruction Educational Technology Research ..70 or higher Very Strong ..edu/libarts/polsci/statistics.19 and below Negligible Source: http://faculty.39 moderate .29 weak . Pearson r: Guide Interpretation (Note: Rule of Thumb only) Absolute value of r Interpretation .quinnipiac.30 .40 .69 Strong .

When performing a correlation. (Or. you are testing the null hypothesis “Ho: There is no relationship between the two variables. the two variables are not correlated)” against the alternative hypothesis “Ha: There is relationship between the variables. (Or. the two variables are correlated)” Curriculum Instruction Educational Technology Research .

05.DECISION RULE: • Reject the Ho if the p-value associated with the computed Pearson r is less than .05 Curriculum Instruction Educational Technology Research . • Do not reject Ho if the p-value associated with the computed Pearson r is equal to or greater than .

A statistically significant finding (p < α.02. Thus. Or. This means that there is only 2% probability that the observed relationship could have happened by chance. Curriculum Instruction Educational Technology Research . then statistical significance should be tested. traditionally α = .4 with p=. the researcher should reject the null hypothesis that the variables are not correlated and conclude that the variables are significantly correlated. Because the researcher will make inferences about the correlation in the population based only on information contain in the sample data. Suppose r = . there is a high probability ( 98%) that the observed relationship would not happen by chance.Testing Statistical Significance • Researcher’s Goal: Investigate if there is correlation between the variables in the population using the sample data drawn randomly from that population.05) is one that is determined statistically to be very unlikely to happen by chance. • Testing for Statistical Significance.

Curriculum Instruction Educational Technology Research . price. price and company image? Hypothesis (Null form): There are no significant relationship between product quality. and company image Research Question: Are there significant relationships between product quality.Example 1: Correlation between product quality. price and company image.

perceived willingness of representatives to negotiate price on all types of purchases • Product Quality (X7) .overall image of the manufacturer's sales force Notes: Data are perceptions of n=100 customers.Data set: hatco. Curriculum Instruction Educational Technology Research . labeled "Poor" and "Excellent". where a ten centimeter line was drawn between the endpoints.perceived level of price charged by product suppliers • Price Flexibility (X3).sav Variables: • Price level (X2) .overall image of the manufacturer/supplier • Salesforce Image(X6) .perceived level of quality of a particular product • Manufacturer Image (X4). Perceptions were measured using graphic rating scale.

Step-by-Step Procedure in SPSS Step 1: CLICK Analyze > Correlate >Bivariate Step 2: MOVE the following to the “Variables:” box Price Level (X2) Price Flexibility (X3) Product Quality (X7) Manufacturer’s Image (X4) Salesforce Image (X6) Step 3: CLICK Ok. Curriculum Instruction Educational Technology Research .

116 . Correlation is significant at the 0.735 N 100 100 100 100 100 Product Quality Pearson Correlation .000 .034 .200* . Correlation is significant at the 0.186 -. (2-tailed) . (2-tailed) .470 ** -.186 Sig.078 .272 ** -.000 .01 level (2-tailed).177 Sig.000 N 100 100 100 100 100 Salesforce Image Pearson Correlation .000 N 100 100 100 100 100 **.116 -.000 .000 .046 .064 N 100 100 100 100 100 Price Flexibility Pearson Correlation -.078 N 100 100 100 100 100 Manufacturer Image Pearson Correlation .735 . Curriculum Instruction Educational Technology Research .487 ** 1 -.046 .05 level (2-tailed).470** . (2-tailed) .034 Sig. (2-tailed) .788** Sig.448 ** 1 .006 .200* 1 .000 . SPSS Outputs Correlations Price Product Manufacturer Salesforce Price Level Flexibility Quality Image Image Price Level Pearson Correlation 1 -.448** -.272** .250 .064 .788** 1 Sig. (2-tailed) . *.000 .006 .487** .250 .177 .

470** .186 -. * p < .200* .116 .272** -.01.177 . Summary of SPSS Outputs Table_ Correlation Matrix of Product Quality. Price and Company Image 1 2 3 4 5 1.200* 1 . Salesforce Image .186 2.788** 5.487** .177 4.788** 1 ** p < . Price Level 1 -. Manufacturer Image .470** -. n=100 Curriculum Instruction Educational Technology Research .448** -.116 -. Price Flexibility -. Product Quality .034 .272** .05.034 3.448** 1 .487** 1 -.