Module 3

Correlation Coefficient:
𝐸(𝑥𝑦)−𝐸(𝑥)𝐸(𝑦)
• 𝑟𝑋𝑌 = 2 2
√(𝐸(𝑋 2 )−(𝐸(𝑥)) )(𝐸(𝑌 2 )−(𝐸(𝑌)) )
𝑛(∑ 𝑥𝑦)−∑ 𝑥. ∑ 𝑦
• 𝑟𝑋𝑌 =
√{𝑛 ∑ 𝑥 2 −(∑ 𝑥)2 }{𝑛 ∑ 𝑦 2 −(∑ 𝑦)2 }
2 2
𝜎𝑋 +𝜎𝑌2 −𝜎(𝑋−𝑌)
• 𝑟𝑋𝑌 = 2𝜎𝑋 𝜎𝑌
2
6 . ∑𝑑
Rank Correlation: 𝜌𝑋𝑌 = 1 − 𝑛(𝑛2 −1)
Regression:
𝑟 .𝜎𝑌
Equation of Regression line of 𝑌 on 𝑋: 𝑌 = 𝑎 + 𝑏𝑋 or (𝑦 − 𝑦̅) = 𝑋𝑌 (𝑥 − 𝑥̅ )
𝜎 𝑋
𝑟𝑋𝑌 .𝜎𝑋
Equation of Regression line of 𝑋 on 𝑌: 𝑋 = 𝑐 + 𝑑𝑌 or (𝑥 − 𝑥̅ ) = 𝜎𝑌
(𝑦 − 𝑦̅)
Multiple Correlation Coefficient:
2 2 1/2
𝑟𝐴𝐵 +𝑟𝐴𝐶 −2𝑟𝐴𝐵 𝑟𝐴𝐶 𝑟𝐵𝐶
• 𝑅𝐴(𝐵𝐶) = ( 2 )
1−𝑟𝐵𝐶
Where 𝑅𝐴. 𝐵𝐶 is multiple correlation between A and linear Combination of B and C
𝑟𝐴𝐵 is correlation between 𝐴 and 𝐵
𝑟𝐴𝐶 is correlation between 𝐴 and 𝐶
𝑟𝐵𝐶 is correlation between 𝐵 and 𝐶
(OR)
1 𝑟12 𝑟13
1 𝑟23 2 1 𝑟13 2
• 𝜔 = |𝑟12 1 𝑟23 |, 𝜔11 = | | = 1 − 𝑟23 , 𝜔22 = | | = 1 − 𝑟13 ,
𝑟23 1 𝑟13 1
𝑟13 𝑟23 1
1 𝑟12 2
𝜔33 = | | = 1 − 𝑟12
𝑟12 1
2 𝜔
• 𝑅1(23) = 1−𝜔
11
2 𝜔
• 𝑅2(13) =1−𝜔
22
2 𝜔
• 𝑅3(12) =1−𝜔
33
Partial Correlation:
𝑟12 −𝑟13 𝑟23 𝜔12
• 𝑟12.3 = =−
2 )(1−𝑟 2 )
√(1−𝑟13 √𝜔11 .𝜔22
23
𝑟13 −𝑟12 𝑟23
• 𝑟13.2 =
2 )(1−𝑟 2 )
√(1−𝑟12 23
𝑟23 −𝑟12 𝑟13
• 𝑟23.1 =
2 )(1−𝑟 2 )
√(1−𝑟12 13

Multiple Regression:
• If 𝑌, 𝑋1 and 𝑋2 are three variables, then the regression equation of 𝑌 on 𝑋1 and Z is
• 𝑌 = 𝑎 + 𝑏1 𝑋1 + 𝑏2 𝑋2
• ∑ 𝑦 = 𝑛𝑎 + 𝑏1 ∑ 𝑋1 + 𝑏2 ∑ 𝑋2 ------(1)
• ∑ 𝑋1 𝑦 = 𝑎 ∑ 𝑋1 + 𝑏1 ∑ 𝑋12 + 𝑏2 ∑ 𝑋1 𝑋2 ------(2)
• ∑ 𝑋2 𝑦 = 𝑎 ∑ 𝑋2 + 𝑏1 ∑ 𝑋1 𝑋2 + 𝑏2 ∑ 𝑋22 -------(3)
Solving equations (1), (2) and (3) gives the value for 𝑎, 𝑏1 and 𝑏2
(OR)
Multiple regression equation of 𝑋 on 𝑌 and 𝑍 :
𝜔 𝜔 𝜔
• (𝑋 − 𝑋̅) 𝜎11 + (𝑌 − 𝑌̅) 𝜎12 + (𝑍 − 𝑍̅) 𝜎13 = 0
1 2 3
1 𝑟12 𝑟13
1 𝑟23 𝑟12 𝑟23 𝑟12 1
• Where 𝜔 = |𝑟12 1 𝑟23 |, 𝜔11 = | | , 𝜔12 = − |𝑟 1 | , 𝜔13 = |𝑟13 |
𝑟23 1 13 𝑟23
𝑟13 𝑟23 1