Chap 12 Correlation Analysis 249 Chapter 12 CORRELATION ANALYSIS (IN SIX WAYS) 12.1 Correlation Analysis ion aims to: discuss the principles embodied in the correlation analysis; analyze and interpret data involving correlation analysis; and apply correlation in different applications When the degree of relationship is measured, corre measurement. For sure, you have noticed some expected relationship between variables, Correlation means that two variables tend to vary together; the presence of one indicates the presence of the other; one can be predicted from the presence of the other, lation is basically the test of ‘The relationship of two variables does not necessarily mean that one is the cause or the effect of the other variable. It does not imply cause-effect relationship. When the computed value of the correlation coefficient is high, it does not necessarily mean that one factor is strongly dependent on the other. On the other hand, when the computed value of the correlation coefficient is small it does not necessarily mean that one factor has no dependence on the other factor. If there is a reason to believe that the two variables are related and the computed value of the correlation coefficient is high, these two variables are really meant as associated. On the other hand, if the variables correlated are low, other factors might be responsible for such small association. The meaning of correlation coefficient just simply informs us that when two Valuables change there may be a strong or weak relationship taking place. Correlations in Diagram Form ' ' iis a6 aera ene neaee iyut . fete ts exit? . oe th Bk " ie ith i lation *ct Positive Correlation Some Positive Correlation No Correla : Fig. 12.1.2 Fig, 12.1.3 > Fig, 12.1.1zid cdots Perfect Negative Correlation Some Negative Correlation Fie. 12.15 Fig, 12.1.4 Relationship Between Two Variables From the diagram above, we can therefore summarize that there are three degrees of correlation relationship between two variables namely: 4. Perfect correlation (positive or negative) 2. Some degree of correlation (positive or negative) 3. No correlation Correlation Interpretation Guide +100 perfect positive correlation | I i very high positive correlation 1 40.75 b— i high positive correlation I +0.50 ---- t ! ‘moderately small positive correlation 40.25 P--- 1 very small positive correlation 0.00 no correlation ! si ' very small negative correlation ai 0.25 p--~ ' . \ moderately small negative correlation -0.50 } 1 . i high negative correlation 0.75 La-- very high negative correlation Perfect negative correlationa nnn Ch 12. Correlation Analysts 254 six Measures of Correlation The process of selecting the appropriate measure of correlation to be used involves a number of important decisions, It ‘might be thought that once a phenomenon had been measured, the choice of a statistical formula would be a soutine one, This all depends on what one means by the word “measure.” If we use the term to refer only to those types of measurement ordinarily used in science such as Physics (e.g. the measurement of length, time, or mass), there is little or no problem in the choice of a mathematical system. But if we broaden the concept of measurement to include certain categorization procedures ordinarily used in statistics, as will be done in this text, the whole problem becomes more complex. We can distinguish among several levels of measurement, and shall find different statistical correlation measures appropriate to each. 1. Correlation between interval variables: Pearson r 2. Correlation between nominal variables: Guttman's Lambda 3. Correlation between ordinal variables of 30 samples or less: Spearman Rho 4. Correlation between ordinal variables of more than 30 samples: Goodman and Kruskal's Gamma 5. Correlation between interval and dichotomous nominal variables: Point Biserial 6. Correlation between interval and any nominal variables: Correlation Ratio Three Levels of Measurement According to /evel of measurement, we can categorize variables into interval, nominal and ordinal. 1. Interval Variable This variable refers to a properly defined by an operation which permits making of statements of equality of intervals rather than just statement of sameness or difference and greater than or less than. An interval variable does not have a “true” zero point: although for convenience, a zero point may be arbitrarily assigned. The measurement for _ Fahrenheit and Centigrade temperature constitute interval variables when we consider four objects a, b, c and d, with temperature of 12, 24, 36 and 48 respectively. It is "appropriate to say that the difference between the temperature a and c is twice the | difference between the temperature a and b. ' 2. Nominal Variable "| This variable refers to a property of the members of a group defined by an ‘operation which allows making of statements only of equality or difference. We may “State that one member is the same or different from the others. For example, individuals May be classified according to their skin color. Color is an example of a nominal Mariable. You may say that the color of your skin is the same or different from other's color. In dealing with nominal variables, you may assign numerals to represent Sses, but such numerals are labels only whose purpose is to identify the members in a given class. For example, “how many students are if light brown color, dark 1” and the like. In short, this is a frequency count of student belonging to that252 Chap 12 Correlation Analysis (In Six Ways) — 3. Ordinal Variable vat, 5 This is a property defined by an operation whereby members of a particular group are ranked. In this operation, we can state that one member Fe Toni ae others in a criterion rather than saying that he/it is one equal or GHFGTenI 107 | io Such as what is meant by the individuals according to aggressivenet. “opliivencss and some other qualities by ranking them, the resulting variable is an ordinal variable, Correlation Between Interval Variables The Use of Pearson r Formula NY xy -Dxvy pe NE TY ; IND x? - (IND? - (Ly) ! where N = number of samples x = first variable y = other variable Example 12.1.1. Let us measure the degree of relationship between the students grades in Mathematics and Science. } Individual Grade in Grade in q Student Mathematics Science 1 85 80 a 90 89 3 87 84 4 79 86 \ 5 75 79 6 80 86 | u 88 90 1 1 8 85 90 | 9 86 87 \ 10 80 86 Solution. Individual Grade in Grade in ‘Student Mathematics Science : &x) @y) 85 2 % % ji a 84 ai 79 : 5 aa 86 2 6 aa 719 " 7 fe 86 8 as 90 - 9 86 90 é ns 10 80 87 835 36 857Chap 12 ‘Correlation Analysis 253 Individual ‘Student 0°) ow) (xy) ea ae me ERED 1 7,225 6,400 6,800 2 8,100 7,921 3,010 3 7,569 7,056 7,308 4 6,241 7,396 6.794 5 5,625 6,241 5,925 6 6,400 7,396 6,880 7 7,744 8,100 7,920 8 7,225 8,100 7,650 9 7,396 7,569 7,482 10 6,400 1,396 6,880 69,925 73,575 71,649 NY w= DxDy YOY - Ow NT y - Oy) _ 10(71,649) — 835(857) 4{{10(69,925) ~ (835)*] [10(73,575) - (857)"] 895 ss — = 0555 '(2,025)(1,301), Interpretation There is a high positive correlation between the students grades in Mathematics and Science. Correlation Between Nominal Variables The Use of Guttman’s Lambda Formula (also known as Guttman's Coefficient of Predictability) 9, - FR=CT b °° N=CT where FR = the biggest cell frequency in each row CT = the biggest column total N = total frequency and the biggest cell frequency in each column = the biggest row total N = total frequency¢ Correlation Analysis (In Six Ways) —_——— — ||) religion and political party where he belongs. Political Party _ LAKAS MMP | REPORMA| “Total. nucb_| *4 : 44 Catholic 20 9 15 27 Iglesia ni Cristo 5 18 4 Protestant ul 8 10 29 Total 36 35 29 100 Solution. FR - CT FC - RT MSN Tot °F M = NoRT a, = QO+18 +11 ~ 36 4g, = QO+18 +15) ~ 44 \4 6100-36 100 1 _13 9 te a * 36 | 2. = 0.20 2, = 0.16 Interpretation > the error minimized in the prediction (increases its accuracy) is 16 percent. These results prove that religion accurately predicts political Party more than political party predicting religion, Correlation Between Ordinal Variables of 30 Samples or Less The Use of Spearman Rho Formula (also known as Spearman Rank-Order Correlation Coefficient) 6y NIN? =p where N = number of samples D = difference between ranks Example 12.1.3. Let us measure the degree of relationshi veen the J ionship between _ Performance rank obtained by the ten trainees during the first and second evaluation period.Chap 12_ Correlation Analysis 255 Student Rank During Rank During Trainee Ist Evaluation 2nd Evaluation A 8 7 B 2 5 ic 7 10 D 1 4 E 4 2 F 9 6 G 3 1 H 6 9 I 10 8 J 5 3 Solution, Student Ist 2nd 7 D Trainee Evaluation __ Evaluation A 8 7 1 I B 2 5 3 9 c 7 10 3 9 D 1 4 3 9 E 4 2 2 4 F 9 6 3 9 G 3 1 2 4 H 6 9 3 9 I 10 8 2 4 J 5 3 2 4 xD = 6 6(62) 10(10? — 1) 372 P=" 990 p = 0.62 | Interpretation : i There is a high positive correlation between the student trainees’ performance | Tank during the first and second evaluation period. Correlation Between Ordinal Variables of More Than 30 Samples The Use of Goodman and Kruskal’s Gamma Formula X, = number of pairs observed in parallel direction = number of pairs observed in opposite direction *256_Chap 12- Correlation Analysis (In Six Ways) ‘Column Variable 3 Cy & Xi 5, Xi Xn x, 5 Xa Xn > x 5 Xs, Xn 3 where +x Ke = Xu Qlan + ay + Xap Xp) + Xn Gay # Xn) + Xai +X) # aX, +x Ky = Xyg(Xqy + Xzq + Nyy + yy) + XQ (Kqy + X31) + Xp (Xr + Xz2) + XX Example 12.1.4, Let us measure the degree of relationship between the students’ performance in academic and non-academic areas. Performance in Academic and Non-Academic Areas 5 12 6 3 8 7 2 5 2 Solution. We follow the indicated steps. Step 1: Arrange the ordering for one of the two characteristics from the highest to the lowest or vice versa from top to bottoin through the rows and for the other characteristic from the highest to the lowest or vice versa from left to tight through the column. ‘Step 2: Compute x, by multiplying the frequency in every cell by the series of the frequencies in all of the other cell which ate both to the right of the original cell below it and then sum up the products obtained. Xx, = 5B +745 +2) +12(7 + 2) + 365 + 2) + 8(2) = 255 Step 3: To solve x,, you simply reverse partially the process described in Step 2. You multiply the frequency of every cell by the sum of the frequencies in all of the cells to the left ofthe original cell below it and then sum up the products obtained. x = 63 +8 +2 +5) +123 +2) + 702 +5) + 82) = 233 ‘Step 4. Substitute the values of x, and x, in gamma. = 22 _ 995 XxX, 488 Interpretation There is a very small positive correlation between the i I ‘ le students’ performance in academic and non-academic areas. 7Chap 12. Correlation Analysis 257 Correlation Between Interval and Dichotomous Nominal Variables The Use of Point Biserial Coefficient of Correlation Formula a LAC &) fe = eal VDSS BCE AE fe) - OF 6) where x = interval variable f, = frequency of one of the dichotomous nominal variable f, = frequency of the other dichotomous nominal variable f = total frequency of the dichotomous nominal variable Example 12.1.5, Let us measure the degree of relation between sex and intelligence. 10 Score No. of Males No. of Females 95 8 3 90 3 2 85 1 4 80 2 0) 15 4 3 Solution. (x) (f,) (f) (f) 95 8 3 8 90 3 2 3 85 1 4 4 80 2 0 2 15 4 3 4 18 12 30 (fx) (fx?) (£,x) 1,045 99,275 760 450 40,500 270 425 36,125 85 i 160 12,800 160 = 525 39,375 300 2,605 228,075 1,575 - fC AN- TAG | PLETAL &) = fH] : 1 = 30(1,575) — 18(2,605) 4 ® f18(12)[30(228,075) — (2,605)?] _ 360 te = 5a 0.10 Tw25 12. Correlation Analysis (In Six Wa Interpretation simeligene i ‘There is very small positive relationship between sex and in . Correlation Between Interval and Any Nominal Variables The Use of Correlation Ratio Formula pe ENON Dy - Nv number of sample per category individual item yy = } Example 12.1.6, Let us measure the degree of relationship between the civil status and the annual salary (expressed in thousand of pesos) of the given samples. Single 65 83 81 69 7B 89 76 60 Married 70 67 90 84 B Widowed 89 64 78 Solution. ; i Np=8 Ns N=3 ! 5 = 596 _ 5, - 389 { werpams y, = Bans 3 = Blin i N=16 | ‘i = 1216 «a6 | 1 465) ¢ @) Can? | Yo = 6S) + BF + BD" 4.4 (9) + (64) 4 18) = 93799 es i BP = ENG = Nyt = BAS! + 507.8)" + 30794) — 16(76) (874.5! + 507.8)" + 307%) | Dy, - Ny 93,792 —16(76= Interpretation There is a very small positive relationshi .. salary (expressed in thousands of pesos) of the aoe civil status and the annual