Correlation-

Correlation
Positive Correlation Negative
when both the variables
when both the variables
direction
change in different
,

in one direction
change ,

that is one is increasing

r

that is both are increasing ,

in
decreasing
is a
in the other
or
decreasing relationship .

relationship
↑ ↓ ↓ ↑
↓ ↓
.

↑ ↑ .

Demand of commodity
price of commodity
a
a 2 ex .

ex
down as
.

a
amount of supply may go
result of rise in price
P↑ s↑
P ↑ D↓
 Methods of finding correlation

(a) Scatter Diagram

(b) Karl 's Coefficient tf correlation
pearson
Rank Correlation
(1) Spearman 's

Positive Negative
Degree of
Correlation

+ I 1
Perfect correlation
-

-
9 or more
9 or more
.

very high degree of

lomelation + .

75 to + 9 75 to -
9
Sufficient high degree of bmdation
•

+
-

.
. •

6 to 75
correlation 6 to -1.75
Moderate degree of
-

+
-
.
.

3 to 6
correlation 6
possibility of
+ -3 to +
-

Only
.

a
the
_ .
.

less than -3
less than -1.3
-

Correlation
possibly no

Correlation ( Uncorrelated )
o
o
Zero
 Scattergood
value of variables ✗ andy
d- from the following pairs of the
dnawa scatter diagram and interpret result .

12 13
8 9 10 11
5 6 7
✗ : t

48 36 30
66 60 54 42 24
78 72
Y :

11 15

18 12

y
^

82 •

72 scatter Diagram
.
-

fy -

56
.

48
-

Yo +

32
-
.

24
-

lb -

8-
I 1 I 1 1
I 1 I I > ✗
0 2 4 6 8 10 12 14 16 18
 Spearman 's Rank to efficient of correlation

÷
ii. = 1-

¥ )+ / m3 m )+ . .
.

]
/ EDZ tg(
.

m3
- .

- m

I 6 -

ok
-

¥1
's rank correlation
Jk =

spearman
rank
D= Difference of
N = No of pair of observation
repeated
.

times the
value is
M = No .

of

calculation of rank
The of 3
types of
problems
are

low elation
:

(a) Whew thanks are given

not given
(b) When Ranks are

when Ranks are equal or repeated

µ
 las when Ranks are
given
blanked the eleven
d. Ina baby competition judges ,
two

Calculate the rank correlation

entries as follow
-
.

coefficient .

I J K
E F G H
Contestant : A B C D

5 6 7 8 9 10 11
I 2 3 Y
Judget
:

5 8 7 10 11 9
3 I 6 4
2
Judges
:

and
(7-52)
lontestant Ji Ja D D2
A 1 2 -1 I

2 3 -
I 1
B

C 3 I -2 Y

D y 6 -2 4
f- 5 Y 1 I

6 5 1
F I

-1
G 7
8 I

H 7 1 I
of
I
1 10
-

9 1

J I 1
10 11
-

k y
9
T¥ 111 2452=27
 rk
ᵗ{,?÷
-
- i -

ni
%É
i
-
-
-

ME
he -

-
I
-

"

m= '
-7¥: :
M l
÷
- -
-

091
Me = I -
0 .

M - O -

909
correlation
degree :
high degree positive
not
given
:

when ranks
are

10 students
in
marks obtained by
I. from the following
calculate Spearman coefficient
's
statistics and Economies ,

of rank correlation .

15 60
33 44 53
20 65 42
Statistics : 36 56
38
60 45 89
25 58 75
35 70
Economics ! 50
AWE
bY0~ R, R2 -

statistics R, Economics R2 D D2
Cx )
4 50 5 -
1 1
3. 6
8 2 6 36
35
56
-6 36
2 70 8
20
1 9 81
10 25
65
6 -
1 1
5 58
42 6 36
q
-

3
yg
33 1 1
7
-

60 9
44 6
8
"5 y
53 7 81
10 -
g
15 I 89
36

/
3 6
9 38
60
ED 2=318
111--10 I

a- i
%:÷
-
-

a- i
;¥÷
-

A- 1-
19,0¥
A- I -1.927

oh = -0.927

degree :
high degree of correlation
 When ranks are equal or repeated :

calculate the coefficient of rank correlation from the following

data :
57
65 25 15
40 9 16 16
48 33
✗ :

6 19
24 6 15 4 20 9
13 13
y :

and
D D2
Ri Ra
✗ Y 2-5 6.25
5.5
13 8 0.25
48 0.5
5- 5
13 6
33 -3.0
9.00
10
7
40 ay
2.25
2.5
-
1.5
t '
9
y
-
3.5 12.25
35
16 15

33
} 3+21=3-5 I 2.5 6.25
16 4
1.00
I
65 20 10 9
I 1.00
5 "
25 9
-0.5 0.25
2 28
15 6 I -00
1.0
8
19 19 9
57

EDZ-39.SN
-10
 No = I -

ED2-il-zlms.mx???..Ft-N-N
6
/

the = I -
6
/ 39.5
-1,12
(23-2) +
¥23
-
2)
-1,12 (23-2)

•ñ:: ÷""÷÷÷
* , _

in i

6lˢ;;;
-
-
-

on =\
•l";;
-

on 1-
2%0
=

the = I -
0.246

the = 0 .
754

correlation
of
high degree positive
degree =
Karl Pearson 's Coefficient of toorelation

Actual Mean Method

①
f-
Eny-
FE
Method
② Direct Mean

r= EXY -
N.IT

Ñ2Éy-)2
Assumed Method Step Deviation
③
2
Mean

Method

r= Edndy -
lEdndy)

☒ÉedyÉ
 Mean Method
Cal Actual
.

d- Calculate product moment of correlation from the

following
the result
data and interpret
.

8 9
Serial Hoof students : I 2 3 4 5 6 7 10

18 21 27 30 36 39 4248
15 24
Monks in Mathematics :

35 41 41 45
27 27 31 33
25 25
Monks in statistics :

"
AE(✗ ) × -
É (4)
y -7 "
my
Maths n n
" Statistics y y
25 -8 64 120
-15 225
15
-8 64 96
-12 25
18 My
36 54
-9 81 27 -6
21
36 36
24
-6 36 27 -6

31 y 6
3 9 -2
27
-

0 33 O O O
°
30
2
" 35 4 12
6
36
8 64 72
&' y ,
39 9
u,
8 64 96
42 12 144
12 144
45 216
48 18 324

En ? Ey= EYE Enya

E✗=3N 1080 330 708
480
 E¥= 30,0-0=30
* =

En -_ 300
r=Eny_
Erik 1080
iÉ E. 4=330

÷↳◦o
? 480
82 =
by
-708
Eng
-

0.98
8=70,8-20
=

Desectmethodd.TW of price
data
b- a commodity for 5 months are
and
quantity purchased relating
given
below .

moment correlation Heart

Calculate the
product
coefficient of correlation) between prices
Pearson 's
and comment its sign and magnitude
quality
on

Y 5
I 2 3
Months :

11 12 12
10 10
Pneie find) :

to 4 3 2
5
linley)
:
Quantity
 µ
price Quantity z
yn ✗ Y
✗
CX) 14 )
50
25
5 100
to
36 60
to 6 too N=5

,, , * g. ,
=

,, , µ,

12 3 144 9 36
5==y
2 144 Y 27
12
Ex -55/64=20 /
- ≤✗
2=1 };
609
EY
/ 4×4=214

r-uEXY-N.IT#-ix-xrEi58z2l4-5(1 )l4)F-s- x- .
a- ÷r◦
✗=
-2×3%2
=

¥329
of correlation ]
8=-0.949 / high degree
 Calculate Karl Pearson 's coefficient of correlation of the following
of height of father
data 's in inches G) and their sons 141 .

result
Interpret the
.

72
68 69 70
57 67
66
height of fathers
: 65
72 69 7)
67 56 65 68 72
height of
sons :

du dn '
nos dy dy '
dndy
Hof
y.gg
✗ -68 Y
✗

2 Y -6
9 67
65 -

3
81 8
-9 1
66 -2 y
56A
-11 121
165J O O O
57
q -3
3
1 1 68
67
-

0
7 49
# 0 72
1681 °
49
7
" 12 7
"
8
69 16
6g y
4
2
39 ZY
70 6
16 71
72 4
qdy= zyy Edndy ≥

Edn= Eda2= 48
20
-10 156
 are r= 48-1-1%201
÷TÉÉ
8=0.438

correlation
moderate degree of t.ve

stepdiviatio-metmod .Thedataonpn.ie
given
and supply relating
below :
to a
commodity

for 7 months are

5 6 7
3 4
Months : I 2

80 100 120 140

60
Poke line ) : 20 40

1100 1200
500 1000 400
/ too 200
Supply inhg)
:
and %ᵈ¥ 7¥
✗ -60 dn does Sno dy dy
'

p y
-

µ,
(x ) -1 I
-100
-2 4 yvo
20 -40
-3 9
200 -30
-1 I
YO -20

FFF o o o s 0

50
0
5
0

25
8° 20 I 1 tooo
-
I 1
-

too
IN 40 2 4 400

bro 6 36
60 3 9 1100
120
7 49
1200 7N
140 80 4 16
4800 13 13,
Edn=7 35
EX -560

dndy

0
}
putiÑ
5
-
2

18
28

ñ
?⃝