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ANALYSIS
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Topics
1. Correlation Analysis
▪ Sample case on Correlation Analysis
▪ Example of Correlation using Jamovi
▪ Example of Correlation using MS Excel
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Topics
1. Introduction
2. Correlation
• What It Means
• What It Does Not Mean
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Case: Housing Prices
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Variables for the Housing Prices Case
HEAT takes on the value of 0 for gas forced air heating &
1 for electric heat.
STYLE: architectural style of a house: 0 indicates a
trilevel, 1 indicates a two-story house & 2 indicates that
a house is a bungalow
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BATHS
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BATHS
❖ RESEARCH OBJECTIVE:
To determine the
DETERMINANTS or PREDICTORS
of housing prices
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BATHS
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Introduction
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Introduction
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Sir Francis
Galton:
Founder of
the
CORRELATION &
linear
regression
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Introduction
Y
• Consider Galton’s
data on heights of
fathers & first
born sons
• Tall fathers tend to
have tall sons;
short fathers tend
to have short
sons.
X
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Introduction
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Introduction
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Introduction
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Correlation
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Correlation & Scatter Plot
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Correlation & Scatter Plot Diagram
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Correlation & Scatter Plot
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Correlation
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Scatter Plot
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Example of a Positive Relationship
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Example of a Negative Relationship
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Scatter Plot
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Correlation & Scatter Plot
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Correlation
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Correlation
Perfect Perfect
negative Zero positive
correlation correlation correlation
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Degree of Strength of Correlation
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Sample Narrative when Describing the Results
of Correlation Analysis
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Null & Alternative Hypothesis Statements for
the Test of Correlation
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Ho & Ha Statements for Housing Price Case
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