Arellano University

School of Business Administration

STAT 01C

Lesson 2. Linear Correlation ( Pearson r )

Day & Time : TTh, 4:00 – 5:30
Date : Nov. 25, 2021

Seatwork 2

Data. Complete the table below. Compute the value of r ( 1 & 2 ) and interpret the
value of r and submit to LMS.

Respondents X Y x’ y’ x’y’ (x’)2 (y’)2 X2 Y2 XY

A 12 13 0 3 0 0 9 144 169 156
B 15 14 3 5 15 9 25 225 196 210
C 11 10 -1 1 -1 1 1 121 100 110
D 15 8 3 5 15 9 25 225 225 120
E 9 7 -3 -1 3 9 1 81 49 63
F 14 12 2 4 8 4 16 196 144 196
G 16 15 4 6 24 16 36 256 225 240
H 8 6 -4 -2 8 16 4 64 36 48
I 7 5 -5 -3 15 25 9 49 25 35
J 13 10 1 3 3 1 9 169 100 130
120 100 90 90 135 1530 1269 1308

Find: 1. N = 10

2. ∑X = 120

3. ∑Y = 100

4. Mean X = 12

5. Mean Y = 10

6. ∑x’y’ = 90

7. ∑(x’)2 = 90

8. ∑(y’)2 = 135
 9. ∑X2 = 1, 530

10. ∑Y2 = 1, 269

11. ∑XY = 1, 308

Compute the value of:

12. r1 = 0.82

13. r2 = 0.92

14. Interpret the value of r = There is a positive High to Very High correlation
between x & y.

Solutions below:

a. r = ∑x’y’
√ ∑(x’)2 ∑(y’)2

= 90 / √ ( 90) ( 135)
= 90 / √ 12, 150
= 90 / 110.22

R = 0.82

b. r = N( ∑XY ) - ∑X ∑Y
√ [ N ( ∑X2 ) – (∑X)2 ] [ N ( ∑Y2 ) – ( ∑Y )2

r = 10 ( 1, 308 ) - (120 ) ( 100 )

√ 10 ( 1, 530 ) – ( 14, 400 ) 10 ( 1, 269 ) – ( 10, 000 )

= 13, 308 - 12, 000

√ (15, 300 – 14, 400) (12, 269 – 10, 000 )

= 1, 308
√ ( 900 ) ( 2, 269 )
= 1, 308
√ 2, 042, 100

= 1, 308
1, 429.02

R = 0.92