Master Of Business Administration (MBA)

DRONE
Applied statistics

Dr. Mamdouh Abd El Alim

Salma Elsayed
Simple liner correlation analysis coefficient of correlation person

∑(𝑥−𝑥)(𝑦−𝑦)
R = √∑(𝑥−𝑥)²∑(𝑦−𝑦)²

Where :
X Value of the first 1st variable
Y Value of the second 2nd variable
∑𝑋
𝑥̅ = Mean of the first 1st variable
𝑛
∑𝑦
y= Mean of the second 2nd variable
𝑛
n Number of observations

N.B
–1<r<1
 Sign
1

+ -
Direct Indirect ( inverse )

Value
2

Less Than 0.5 Between 0.5 & 0.8 0.8 or more

Weak Moderate Strong

3 R= 0 :- no correlation
Coefficient of determination = R2 o < R2 < 1

Y Y

X X

Direct Inverse (Indirect)

EX In a study of the relationship between two variables X and Y, the following
information was given :
X 10 9 8 7 6
(a) Draw a scatter diagram. Y 8 5 4 2 1
(b) Find coefficient of correlation and calculate coefficient of determination.
Y
8
7
6
5
4
3
2 Direct
1
X
6 7 8 9 10
Find coefficient of correlation and calculate coefficient of determination

∑(𝑥−𝑥)(𝑦−𝑦) X 10 9 8 7 6
R= √∑(𝑥−𝑥)²∑(𝑦−𝑦)² Y 8 5 4 2 1

X Y (x-x̅) (y-y̅) (x-x̅) * (y-y̅) (x-x̅)² (y-y̅)² ∑𝑥

𝑥̅ = = 40 / 5 = 8
X-8 Y-4 𝑛

10 8 2 4 8 4 16 ∑𝑦
𝑦̅ = = 20 / 5 = 4
𝑛
9 5 1 1 1 1 1
17 17
8 4 0 0 0 0 0 R= R=
10∗30 300
7 2 -1 -2 2 1 4
17
6 1 -2 -3 6 4 9 R = 17.32 = 0.98
40 20 0 0 17 10 30
Direct , Strong Correlation R² = 0.96
coefficient of correlation , direct – strong

Number of Value
EX In a study of the relationship between two variables X and Y, the following
information was given :
X 3 5 6 7 9
Y 4 7 8 9 12
(a) Draw a scatter diagram.
(b) Find coefficient of correlation and calculate coefficient of determination.

Y
14
12
10
8
6
4 Direct
2
0
X
2 4 6 8 10
Find coefficient of correlation and calculate coefficient of determination

∑(𝑥−𝑥)(𝑦−𝑦) X 3 5 6 7 9
R = √∑(𝑥−𝑥)²∑(𝑦−𝑦)²
Y 4 7 8 9 12
X Y (x-x̅) (y-y̅) (x-x̅) * (y-y̅) (x-x̅)² (y-y̅)² ∑𝑥
𝑥̅ = = 30 / 5 = 6
X-6 Y-8 𝑛

3 4 -3 -4 12 9 16 ∑𝑦
𝑦̅ = = 40 / 5 = 8
𝑛
5 7 -1 -1 1 1 1
26 26
6 8 0 0 0 0 0 R= R=
20∗34 680
7 9 1 1 1 1 1
26
9 12 3 4 12 9 16 R = 26.0768 = 0.997
30 40 0 0 26 20 34
Direct , Strong Correlation R² = 0.994
coefficient of correlation , direct – strong

Number of Value
EX In a study of the relationship between two variables X and Y, the following
information was given :
X 0 1 2 3 4

(a) Draw a scatter diagram. Y 3 5 10 12 15

(b) Find coefficient of correlation and calculate coefficient of determination.

Y
16
14
12
10
8
6 Direct
4
2
X
0 1 2 3 4
Find coefficient of correlation and calculate coefficient of determination

∑(𝑥−𝑥)(𝑦−𝑦) X 0 1 2 3 4
R = √∑(𝑥−𝑥)²∑(𝑦−𝑦)²
Y 3 5 10 12 15
X Y (x-x̅) (y-y̅) (x-x̅) * (y-y̅) (x-x̅)² (y-y̅)² ∑𝑥
𝑥̅ = = 10 / 5 = 2
X-2 Y-9 𝑛

0 3 -2 -6 12 4 36 ∑𝑦
𝑦̅ = = 45 / 5 = 9
𝑛
1 5 -1 -4 4 1 16
31 26
2 10 0 1 0 0 1 R= R=
10∗98 980
3 12 1 3 3 1 9
31
4 15 2 6 12 4 36 R = 31.30 = 0.99
10 45 0 0 31 10 98
Direct , Strong Correlation R² = 0.98
coefficient of correlation , direct – strong

Number of Value
EX In a study of the relationship between two variables X and Y, the following
information was given :
X 2 4 6 8 10
Y 7 7 6 4 1
(a) Draw a scatter diagram.
(b) Find coefficient of correlation and calculate coefficient of determination.

Y
8
7
6
5
4
3 Inverse (Indirect)
2
1
X
2 4 6 8 10
Find coefficient of correlation and calculate coefficient of determination

∑(𝑥−𝑥)(𝑦−𝑦) X 2 4 6 8 10
R = √∑(𝑥−𝑥)²∑(𝑦−𝑦)²
Y 7 7 6 4 1
X Y (x-x̅) (y-y̅) (x-x̅) * (y-y̅) (x-x̅)² (y-y̅)² ∑𝑥
𝑥̅ = = 30 / 5 = 6
X-6 Y-5 𝑛

2 7 -4 2 -8 16 4 ∑𝑦
𝑦̅ = = 25 / 5 = 5
𝑛
4 7 -2 2 -4 4 4
−30 −30
6 6 0 1 0 0 1 R= R=
40∗26 1040
8 4 2 -1 -2 4 1
−30
10 1 4 -4 -16 16 16 R = 32.25 = -0.93
30 25 0 0 -30 40 26
Inverse (Indirect) , Strong Correlation R² = 0.86
coefficient of correlation , indirect – strong

Number of Value