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SPE401 Fall 2021 638098030273820341
SPE401 Fall 2021 638098030273820341
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03 a) Z-Score, T-Score, and
Correlation
4
CHAPTER #03
Introduction to Statistics
Lecture 09
WEEK #03
5
Z-Score
Example : let, your score in test is 1100. The mean score for the
test is 1026 and the standard deviation is 209. How well did
your score on the test compared to the average test taker?
z = (x-μ)/σ
z = (100-1026)/ 209
z = 0.354.
This means that your score is 0.354 standard deviations above
the mean.
T-Score
t = (X – μ) / s/√(n)
Example:
Let suppose a sample selected from a population who's mean,
sample standard deviation, population mean, and sample size
are as follows;
What is the probability that the mean will be more than 280?
x̄ = sample mean = 280
μ0 = population mean = 300
s = sample standard deviation = 50
n = sample size = 15
t = (280 – 300)/ (50/√15) = -20 / 12.909945 = -1.549
df = n-1 = 15-1 = 14
t = -1.549
Probability = 0.0718
Correlation
Correlation:
• Correlation means the degree of interdependence between
two variables. OR
• The interdependence between two variables is known as
correlation.
• For example: Height of the children and age of the children
increases simultaneously.
• If the car numbers increases automatically the fuel
consumption is expected to increase.
• The correlation among some variables is positive and in
some variables negative.
Correlation Coefficient
Correlation Coefficient:
The correlation coefficient numerically measured the degree of
interdependence between two variables.
It is denoted by ρ for population data and by r for sample data.
The range of the coefficient is from -1 to +1.
Formula :
Degrees of Correlation
Perfect Negative r = -1
No Correlation r=0
Partial Correlation:
Partial correlation is the relationship between two variables
while controlling for a third variable or variables. The purpose
is to find the specific correlation between two variables while
eliminating the correlation with the third variable.
Formula for Partial Correlation
Coefficient
In the above formulas the r12.3 means that we are finding the correlation
between variable 1 and 2 while keeping the variable 3 constant. In the second
equation, r13.2 means that we are finding the correlation between variable 1
and 3 while keeping the variable 2 constant. In equation 3, we are trying to
find the correlation between variable 2 and 3 while keeping variable 1
constant.
Example of Bivariate Correlation
x y x2 y2 xy
1 2 1 4 2
2 5 4 25 10
3 3 9 9 9
4 8 16 64 32
5 7 25 49 35
15 25 55 151 88
Solution
=0.8
r= 0.8
The value of r is 0.8 which shows the strong positive correlation between X and Y
Example of Partial Correlation
x1 x2 x3
23 3 45
34 5 56
56 7 66
78 9 67
45 8 56
77 10 45
34 14 34
67 23 34
89 30 23
98 40 12
Solution
Solution:
When the necessary calculations are made and the values are
put in the formulas, we get the following values.
r13.2 = .658 (Correlation between X1 and X3 while keeping
X2 constant.
r23.1 = .908 (Correlation between X2 and X3 while keeping
X1 constant)
r12.3 = .835(Correlation between X1 and X2 while keeping X3
constant.
Thank You