LINEAR CORRELATION

Measures of RELATIONSHIP
Prepared by: Ms. RUBIE R. HERRERA
Linear Correlation

Health

- Is

a persons blood pressure related to his or her age?

Education

Is the number

of hours a student studies related to his exam score?

Education

Is the number

of absences related to a students academic performance (grade)?

Business

Is the volume of

the sales for a month related to the amount of advertising the firm does?

What does it mean to say that two variables are associated with one another? How can we mathematically formalize the concept of association?

HAPPINESS

COFFEE CONSUMPTION

CORRELATION
Statistical method

to determine whether a relationship between variable exists.

Purposes:

Are 2 or more variables

related? What is the strength of relationship? What type of relationship exists?

Concepts

A. PEARSON PRODUCTMOMENT 9CORRELATION COEFFICIENT

Bivariate,

linear relationship Requires at least interval level for variables Values can range from 0 to 1.0, can be positive or negative
Linear Correlation

Correlation

If r = 0, then there is no correlation

between the two variables. If r = 1 (or -1), then there is a perfect positive (or negative) relationship between the two variables.

2 Dimensions or Aspects
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I.

MAGNITUDE OR STRENGTH

0 0.1- 0.3 0.4- 0.6 0.7-0.9 1

No Relationship Weak Relationship Moderate Relationship Strong Relationship Perfect Relationship

Linear Correlation

II. DIRECTION
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a). POSITIVE Direct Relationship HIGH values on one variable is associated with HIGH values on the other variable, and vice versa.

Ex. Correlation between IQ and Achievement is + 0.8.

Linear Correlation

DIRECT RELATIONSHIP
Height and weight

Age and stress

Intelligence and

GPA Weekly hours of tv and prevalence of obesity distance of shipment and length of time

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b) NEGATIVE Inverse Relationship HIGH values on one variable is associated with LOW values on the other variable, and vice versa.

Ex. Correlation between Number of days absent and Achievement is 0.6.

Linear Correlation

INVERSE RELATIONSHIP
Family size and

savings Life expectancy and smoking Grades and class attendance Demand and supply

Types of Correlation

Positive correlation

Negative correlation

No correlation

Scatter Plots of Data with Various Correlation Coefficients

Y Y Y

X
r = -1 Y Y r = -.6

X
r=0 Y

r = +1

X r = +.3

X r=0

Linear Correlation
Linear relationships Y Y Curvilinear relationships

X Y Y

Linear Correlation
Strong relationships Y Y Weak relationships

X Y Y

Linear Correlation
No relationship Y

X Y

PEARSON CORRELATION COEFFICIENT 21 ( Pearsons r)

WHERE:

X= independent variable Y= dependent variable N=sample size r=degree of relationship between X and Y
Linear Correlation

Example

YEARS 4 6 8 7 5 6 9 4 6 5
Linear Correlation

22 STRESS 8 5 3 4 5 5 2 7 5 6

SKILLS 5 7 9 7 5 7 10 6 8 6

X and Y

DEPENDENT VARIABLE- the variable that is being predicted or estimated.

INDEPENDENT VARIABLE- a variable that provides basis for estimation. It is the predictor variable.

X
4 6 8 7 5

Y
8 5 3 4 5

6
9 4 6

5
2 7 5

=60
Linear Correlation

= 50

X2 16 24 36 64 49 25 36 81 16 36 25 =384

Y2 64 25 9 16 25 25 4 49 25 36 =278

XY 32 30 24 28 25 30 18 28 30 30 =275

What is the degree of the relationship between the number 25 years in work and of the stress level of the accountants?

r= 10 (275) - (60) (50) sqrt [ 10(384) (60)2 ][10(278)-(50)2]

r = -0.96
Interpret the result.
Linear Correlation

Graphical Presentation
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Scatterplot diagram of the years and stress

9 8 7 6 5 4 3 2 1 3 4 5 6 7 8 9 10

YEARS

: Inverse Relationship
Linear Correlation

Bivariate Correlation
De scriptive Statis tics
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YEARS STRESS

Mean 6.00 5.00

Std. Deviation 1.633 1.764

N 10 10

Co r r elations YEARS YEARS Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N 1 . 10 -.964** .000 10 STRESS -.964** .000 10 1 . 10

STRESS

**. Correlation is signif icant at the 0.01 level (2-tailed).

Linear Correlation

Years and Skills

Corre lations YEARS YEARS Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N 1 . 10 .917** .000 10 SKILLS .917** .000 10 1 . 10
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SKILLS

**. Correlation is significant at the 0.01 level (2-tailed).

Linear Correlation

Stress and Skills

Correlations SKILLS SKILLS Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N 1 . 10 -.849** .002 10 STRESS -.849** .002 10 1 . 10

STRESS

**. Correlation is signif icant at the 0.01 level (2-tailed).

Scatterplot diagram of the years and skills

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30

10

5 4 3 4 5 6 7 8 9 10

YEARS

Linear Correlation

Scatterplot diagram of the stress and skills

11

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10

5 4 1 2 3 4 5 6 7 8 9

STRESS

Linear Correlation

Coefficient of Determination
It shows the percentage of variation of the dependent variable y that can be attributed to the variation of the independent variable x. The rest of variation is due to chance.

a. Compute for r2

2 r

Linear Correlation

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TESTING THE SIGNIFICANCE OF r

NULL HYPOTHESIS
Ho: p = 0 ( the correlation in the population is zero) (there is no relationship between the 2 variables)

ALTERNATIVE HYPOTHESIS
Ha: p 0 ( the correlation in the population is different from zero) (there is a relationship between the 2 variables)

t-test FOR THE SIGNIFICANCE OF r

with n-2 degrees of freedom