MODULE 7

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 Basic Education Department
School Year 2020-2021
2nd QUARTER

Subject: STATISTICS AND PROBABILITY Module Number: 7

Topic: Correlation and Regression Analysis Module Duration: 1 week

I. CONTENT STANDARD

The learner demonstrates understanding of key concepts of correlation and regression

analyses.

II. PERFORMANCE STANDARD

The learner is able to perform correlation and regression analyses on real-life problems in
different disciplines.

III. MOST ESSENTIAL LEARNING COMPETENCIES

The learner:

1. Illustrates the nature of bivariate data.

2. Constructs a scatter plot.
3. Describes shape (form), trend (direction), and variation (strength) based on a scatter
plot.
4. Calculates the Pearson’s sample correlation coefficient.
5. Solves problems involving correlation analysis.

IV. LEARNING PROCEDURES

A. Routinary Activities

Prayer

May the darkness of sin and the night of unbelief vanish before the light of the Word and
the Spirit of Grace!

And may the Heart of Jesus live in every hearts of all people! Amen

V. LEARNING OBJECTIVES

Upon completion of this lesson, students will be able to:

 Construct the scatterplot for a set of bivariate data
 Estimate the strength of association between two variables based on a scatterplot
 Interpret the computed correlation coefficient in terms of strength and direction
 Apply and solve real-life problems involving correlation analysis

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 Understanding Correlation Analysis

So far, we have analyze data involving only a single variable – for instance, the grades of
students, the weights of grocery products, and the lengths of rods. These data are called
UNIVARIATE DATA because they involve a single variable only. In this lesson, we shall
analyze data involving two variables. Data that involve two variables are called BIVARIATE
DATA.
The analysis of bivariate data involves describing the relationship between two variables. The
process or procedure of describing the relationship between two variables is called
CORRELATION ANALYSIS.

Describing Relationship Using a Scatter Plot

The relationship between two variables can be described by constructing a scatter plot. A scatter
plots a graphical representation between two variables.

Types of Correlation according to Direction

Positive Correlation
A positive correlation exists f high values in one
variable are associated with high values in another
variable. Similarly, low values in one variable are
associated with low values in the other variable.
If a positive correlation exists, then the points on
the scatter plot closely follow a straight line slanting
up to the right.
Negative Correlation
A negative correlation exists if high values in one
variable are associated with low values in another
variable. Similarly, low values in one variable are
associated with high values in the other variable.
If a negative correlation exists, then the points on
the scatter plot closely follow a straight line slanting
down to the right.
Zero Correlation
A zero correlation exists when high values in one
variable are associated to either high or low values in
the other variable.
If a zero correlation exist, then the points on the
scatter plot are randomly scattered. The points do not
follow closely a straight line.

Types of Correlation according to Strength

A perfect correlation exists when all the points on the scatter plot lie on a straight line.
When the points on the scatter plot do not lie on a straight line, the relationship, may be very
high, high, moderately high, low, negligible or zero.

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 The next illustrations show the different types of relationship described in terms of
direction and strength.

Example 1: Ice Cream Sales (Graph/Plot, Direction, Strength)

The local ice cream shop keeps track of how much ice cream they sell versus the temperature on
that day, here are their figures for the last 12 days:

Notice that the points on the scatter plot do not lie on one line. However, the points closely
follow a straight line. This line is called a trend line.
In terms of direction, the relationship between temperature and ice cream sale is Positive
Correlation.

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 In terms of strength, the relationship between temperature and ice cream sale is High Positive
Correlation.

Describing Relationships using the Pearson Product-

Moment Correlation Coefficient

To describe the relationship between two variables, we can compute the correlation
coefficient (r). The correlation coefficient is a number between -1 and 1 that describes both the
strength and the direction of correlation. In symbol, we write −1 ≤ 𝑟 ≤ 1.

If the value of r is 1, 0, or -1, we interpret it as follows.

Value of r Interpretation
𝑟=1 Perfect positive correlation
𝑟=0 No correlation or zero correlation

𝑟 = −1 Perfect negative correlation

The following scale is used to interpret the other values of r.

Correlation Scale
Value of r Interpretation
±0.81 𝑡𝑜 ± 0.99 Very high correlation
±0.61 𝑡𝑜 ± 0.80 High correlation
±0.41 𝑡𝑜 ± 0.60 Moderately high correlation
±0.21 𝑡𝑜 ± 0.40 Low correlation
±0.01 𝑡𝑜 ± 0.20 Negligible correlation

Pearson Product-Moment Correlation Coefficient

To compute the correlation coefficient, we use the Pearson Product-Moment Correlation
(PPMC) coefficient. The following formula gives the Pearson Product-Moment Correlation
(PPMC) coefficient.
∑(𝑋 − 𝑋̅)(𝑌 − 𝑌̅)
𝑟=
√∑(𝑋 − 𝑋̅)2 ∑(𝑌 − 𝑌̅ )2
Where,
𝑋 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑋
𝑌 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑌
𝑋̅ = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑋
𝑌̅ = 𝑚𝑒𝑎𝑛 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑌

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 Another Formula for Computing the Pearson Product-Moment Correlation Coefficient

The procedure for computing the Pearson Product-Moment Correlation coefficient using the
preceding formula is quite tedious. We can use another computing formula which is much
shorter and does not require the use of mean. This formula uses the raw scores only.

𝑛 ∑ 𝑋𝑌 − ∑ 𝑋 ∑ 𝑌
𝑟=
√[𝑛 ∑ 𝑋 2 − (∑ 𝑋)2 ][𝑛 ∑ 𝑌 2 − (∑ 𝑌)2 ]

Example 1

A store manager wishes to find out whether there is a relationship between the age of the
employees and the number of sick days they incur each year. The data for the sample are shown.
Calculate the correlation coefficient ( r ) and describe the relationship in terms of strength and
direction.

Employee A B C D E F
Age (X) 18 26 39 48 53 58
Days (Y) 16 12 9 5 6 2

Step 1

1. Get the sum of the value of X. This is ∑X.

2. Get the sum of the value of Y. This is ∑Y.
Employee X Y
A 18 16
B 26 12
C 39 9
D 48 5
E 53 6
F 58 2
∑ X = 242 ∑ Y = 50

Step 2
1. Multiply the corresponding values of X and Y. Label this as XY.
2. Get the sum of the values of XY. This is ∑XY.
Employee X Y XY
A 18 16 288
B 26 12 312
C 39 9 351
D 48 5 240
E 53 6 318

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 F 58 2 116
∑ X = 242 ∑ Y = 50 ∑ XY = 1625

Step 3
1. Square each value of X. Label this is X2.
2. Get the sum of the values of X2.This is ∑X2
3. Square each value of Y. Label this is Y2.
4. Get the sum of the values of Y2.This is ∑Y2

Employee X Y XY 𝑋2 𝑌2
A 18 16 288 324 256
B 26 12 312 676 144
C 39 9 351 1521 81
D 48 5 240 2304 25
E 53 6 318 2809 36
F 58 2 116 3364 4
∑ X = 242 ∑ Y = 50 ∑ XY = 1625 ∑ 𝑋 2 = 10998 ∑ 𝑌 2 = 546

Step 4

Substitute the computed values in the formula to solve for the value of correlation coefficient.

𝑛∑𝑋𝑌− ∑𝑋∑𝑌
r=
√[𝑛∑𝑋 2 −(∑𝑋)2 ][𝑛∑𝑌 2 −(∑𝑌)2 ]

𝟔(𝟏𝟔𝟐𝟓) − (𝟐𝟒𝟐)(𝟓𝟎)
𝒓=
√[𝟔(𝟏𝟎𝟗𝟗𝟖) − (𝟐𝟒𝟐)𝟐 ][𝟔(𝟓𝟒𝟔) − (𝟓𝟎)𝟐 ]

𝒓 = −𝟎. 𝟗𝟖

Step 5

Using the correlation scale, we interpret the obtained value of 𝑟 = −0.98 as very high
negative correlation. This implies that there is a very high negative correlation between the age of
employees and the number of sick days while younger employees tend to have more number of
sick days.

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 Name: _______________________________ Id number: ___________
Year and Section: ______________________ Score: _____________

STATISTICS AND
PROBABILITY
MODULE 8
Directions: Identify whether the variable is describe as positive, negative or zero correlation.

1. room rate and size of a room in a hotel
2. weight and height of students
3. weight and age of students
4. age and height of trees
5. number of customers and sales in a department
store
6. pressure and volume of a gas
7. IQ and height of persons
8. amount of rainfall and amount of agricultural
harvest
9. area and length of a side a square
10.speed and mileage of a car
11.extent of fatigue and performance in a speed test
12. income and educational attainment of
employees
13. sense of humor and shoe size of persons
14. ages of husbands and wives
15. production costs and sales of a compny
16. number of workers and number of days to
complete job
17. height and shoe size
18. number of hours studided and score obtained
in a test
19. profit and capital investment
20. blood pressure and cholesterol level

A. Solve the following problem. Use another paper for your solution (HANDWRITTEN). Put your
own signature at the bottom part of your answer. Specify the details that you will have to do for
each step in the solution process.

1. A language teacher is interested to find out whether students who are good in English are also
good in Filipino. The following sample data have been obtained. Determine if there is a
relationship between performances in English and in Filipino. Describe the relationship using
scatter plot and Pearson’s r.

Score in English Test Score in Filipino test

16 4
14 6
10 4
9 8
8 7
8 8
7 10
6 9
4 14
2 12

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.
 References

Statistics and Probability – Brilliant Creations Publishing Inc.,

Statistics and Probability – Rex Bookstore
Statistics and Probability Teaching Guide

Prepared by: Reviewed by:

ALLYN T. FRANCISCO, LPT

LADY JANE B. CALDERON, LPT Subject Coordinator
Statistics and Probability Teacher Basic Education, Divine Word College of Calapan
Basic Education, Divine Word College of Calapan

Noted by: Recommended by:

JENNY LIZ J. ANYAYAHAN

DR. FEDELIZA A. NAMBATAC
Academic Coordinator Principal
Basic Education, Divine Word College of Calapan Basic Education, Divine Word College of Calapan

Approved by:

BR. HUBERTUS GURU, SVD

Director
Basic Education, Divine Word College of Calapan

PROPERTY OF DIVINE WORD COLLEGE OF CALAPAN. DO NOT reproduce or disseminate without the owner’s consent.