Course: Research Tools For Business Decision Making

Class : I year B.Com.LL.B (Hons)

Date : 06.05.2020
Name: M.SHUNMALAR

Roll no: BC0190044

Assignment - III
Calculate coefficient of correlation by using Karl Pearson’s method from the following
data taking deviation from 48 in case of X series and 20 in case of Y series:

X 40 42 46 48 50 56
Y 10 12 15 23 27 30
Solution:

Calculation of coefficient of correlation

(X-48) (Y-20)
X dx2 Y dy2 dxdy
dx dy
40 -8 64 10 -10 100 +80
42 -6 36 12 -8 64 +48
46 -2 4 15 -5 25 +10
48 0 0 23 +3 9 0
50 +2 4 27 +7 49 +14
56 +8 64 30 +10 100 +80
Σ dxdy =
Σ dx = -6 Σ dx2 = 172 Σ dy = -3 Σ dy2 =347
232

N Σd x d y −( Σ d x ) (Σ d y )
=
√ N Σ d −( Σ d ) √ N Σ d −(Σ d
2
x x
2 2
y y
2
)

6 × 232−(−6 ) (−3)
r = √6 (172 ) −(−6) √ 6 ( 347 )−(−3)
2 2

1392−18
= √1032−36 √2082−9
 1374
= √ 996 √2073
1374
= 31.56× 45.53

1374
= 1436.93

= 0.956