LINEAR CORRELATION

Linear correlation is an investigation into the degree of the relationship between two variables.
The technique that is used must determine how well a linear equation of the form y = mx + b
Describes the relationship between the variables.
If the graph of the relationship is correctly drawn, all the coordinates of x and y lie exactly on a straight
line, and a perfect correlation is said to exist between the variables x and y.

In statistics, when two variables are being investigated, the location of the coordinates on a rectangular
coordinate system is called a scatter plot. When a scatter plot is constructed, it can be one of the
diagrams below that represent (a) positive correlation, (b) negative correlation or (c) no correlation.

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In the summation of x, all values of x are added and the sum is 72.
In the summation of the square of x, all values of are squared first, then the squares are added and the
sum is 1064.
16 is from 4 times 4
64 is from 8 times 8

For summation of y, all y values were added, and its total is 180.
In the summation of squared of y, 2116 is from 46 times 46.
Each value of y is squared. Resulting to summation value of 5824.
In the summation of xy, value of x is multiplied to its corresponding value of y.
184 is from 4 times 46.
272 is from 8 times 34
And so on.

Then substitute to the formula. The resulting coefficient of correlation is -0.92

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LINEAR REGRESSION
In correlation analysis, the discussion focuses on the degree of the relationship between the variables x
and y. If a scatter diagram is drawn and the line which nearly indicates the trend of the coordinates is
then drawn, this line is called the REGRESSION LINE.
A study of the techniques of regression will enable you to draw the line of best fit for a given set of
coordinates and to represent the set of coordinates by a mathematical equation.

If a law exists connecting the variables, the nature of the association is stated as a mathematical
equation. The equation can then be used to predict values of some variable for the given values of the
other.
The variable which is being predicted is called the DEPENDENT VARIABLE and is usually associated with
the vertical axis of a graph.
The variable being used as the basis of prediction is called the INDEPENDENT VARIABLE and is usually
associated with the horizontal axis of a graph.

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When performing a regression analysis, it is necessary to decide which is the dependent variable and
which is the independent variable and the decision is normally based on a “cause and effect”
relationship.

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The Normal Distribution
Data may exhibit various trends and patterns. A common pattern is the bell-shaped curve known as the
“normal distribution.“ In a normal distribution, points are as likely to occur on one side of the average as
on the other.
The normal distribution is a unique arrangement of values in that if the values are graphed, the curve
takes a distinct bell-shaped and symmetrical form. An important feature of the normal distribution, is
that it depends only on two quantities, the mean, ų and the standard deviation. In other words, there is
one and only one normal distribution with a given mean and a given standard deviation. The normal
curve is symmetric about its mean, which locates the peak of bell.

A normal distribution has the following characteristics:

1. The curve is continuous.
2. The curve is bell-shaped.
3. The curve is symmetrical about the mean.
4. The mean, median, and mode are located at the center of the distribution and are equal to each
other.
5. The curve is unimodal (single mode).
6. The curve never touches the x-axis.
7. The total area under the normal curve is equal to 1.

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