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Unit 10-MRA
Unit 10-MRA
CHAPTER-15
D R D E E PA K C H AW L A
What is Correlation?
DR
Types of Correlation
DR
negative.
Zero correlation: The correlation between two
variables X and Y is zero when the variables
move in no connection with each other.
Where,
Once βˆ is
estimated, the value
of α may be
computed as,
n and k denote the sample size and number of parameters to be estimated respectively.
The hypothesis to be tested for the slope coefficient is mentioned below as:
H0 : β = 0
H1 : β ≠ 0
D R D E E PA K C H AW L A
The test statistic to be used to test the significance of the slope coefficient is
given by:
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The estimation is carried out using the OLS method which results
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in the following:
H 1 : b1 ≠ 0
The test statistic may be written as:
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H 0 : b0 = b 1 = b 2 = 0 ⇒ R 2 = 0
H1 : All b’s are not zero ⇒ R2 > 0
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Where,
Y = Starting salary of a college lecturer in thousands ` per month
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The above two equations differ by the amount γˆ. It is known that
γˆ can be positive or negative. If γˆ is positive it would imply that
the average salary of a male lecturer is more than that of a
female lecturer by the amount γˆ while keeping the number of
years of experience constant.
RESEARCH CONCEPTS AND
D R D E E PA K C H AW L A DR
NEENA SONDHI
RESEARCH
CONCEPTS AND
END OF CHAPTER