Subject : Business Statistics

Unit 1 : Linear Correlation

Topic : practical sum of karl pearson’s product moment method
Prepared by : Prof. Monti Daredi

Sum no : 1
For the following data find the coefficient of correlation between x and y.
No of pairs of x y xy
observation x2 y2

1 1 3 1 9 3
2 2 1 4 1 2
3 3 2 9 4 6
4 5 0 25 0 0
5 6 -1 36 1 -6
6 8 2 64 4 16
7 10 4 100 16 40
∑x = 35 ∑y = 11 ∑x2 = 239 ∑y2=35 ∑xy = 61

No of pairs of observation = n = 7
𝑛 ∑𝑥𝑦 −(∑𝑥)(∑𝑦 )
r=
𝑛 ∑𝑥 2 −(∑𝑥)2 𝑛 ∑𝑦 2 −(∑𝑦 )2

7∗61− 35 (11)
r=
7∗239−(35)2 7∗35−(11)2

427−385
r=
1673 −1225 245−121

42
r=
448 124

42
r=
55552

42
r=
235.69

r = 0.18

There is partial positive linear Correlation between Two variables.