,Xi

r t.
Monf;"

176

~\/j/

7, The ~ta:ndard deviation of a symmetrical diS1ribution is .3. What inUit tJe$

value of the distribution about'ih~ mean in order that the distributiorl~
.":'!'

Chapter 8

mesokurtic?

8. Given in a frequency distribution,

N = IOO,tjd =50,T.jd
'~l and ~2'

=1967.2,lId 3 = 292S.8,Ljd 4 =86650,2.

CorrelatibD
.
.
..

F~i
"\~

.~?

9.. Thr first four moments about the value 4aro;: -1.5,1.5,17 and lO8.Find'

Measures of location, dispersion and skewness aie\cllP'aet~riStics

single variable concerning' a'statistitaJ' data. In, tbiSchapter, we

jntroduceJhe concept of correlation ,wl.tich is :oneof the me~odsof

sludying>thci relationship between tWo variables;.In statistieal anaJYsisWe

come' across,the st\ld-y:'oftwo:variables wherein the 'change' ill the: Value

'of one variable'produ~s'a change in ,thevalue botbervanable..:lnthat

.case we'; say tnat'the<).ariab1es are ,correJated 1Of tberoiS a, corre~tiOD

between the;twCJvariable8~iTwo ...ariables,may hi.ve a positivcoorrelatiOD,

a'negative rorreJation nrthey may bewJCorr~tated.,

'
"

first four moments (i) about the mean (ii) abo~t the origin.

of~a

io. The first four moments about the the mean are 0, 3,2, 3.6 and 120 .

inean is 11. Find the moment about the origin.

,j

lJ. The first four mome~1S ofa distribution about the value 4 are l.3.s, 10, 5, 4~
.
~
~nd 282, Find the four central moments.
.

'

14. If the first four moments about the value 4 are 1,6,16 and 72 show thatJt
four central moments are 0,5,0 and 41. Comment on the nature of di':>'

~Tst

tion.

.posltiV~C~~I~~o~

.~

12. The first three

moments
ofa distribution about the value 3 are.2,10 and ~':~
.
.
Show that the first three moments about the originare 5;31 and 141. Also s')

that the mean is 5, variance is 6 and fJ3 =-74.

1~
':~~
11, If about the origin the first three moments moments are 3,24 and 76, shi

that about the value 2, the first three moments are 1, 16 and-40. .

,r~'

0,120,0,36000, find PI and ~2'

'/

.~;0;~'"

'

are

Neptive Com~.don

~l

", R~:
15. Given that the first moments ,abouUts moments of a distribut{!lr

,."','

Two ,vari.bles:,arcwd cd b-..'iti5idvely correlated iHor an increase

,,~ the value of ODe variable there is also an increase in the value of t~e
other variable or for a deC;':ease in the value of one variable tbere is ~
a decrease in the va1~ of the other variable ; that is tbe two variables
,cb.angc in the ~C'dti'ection. For ewnple, the q~~ity of a co11Ul1O<J4y
supplied and its/price
positively correlatea"'tsin~ ~ the pri~
increascs, t~~quantity supplied also increases andwIien;,~he p~
decreaselufhe quantity supplied also decreases. Other cxamplesof
positivelY.corrcJated"yari~bles are the dividend and thepr~millmQftbe
Wro. y~. o'~~ri.~Il9; ~d salary of eq,\ploy~~& in a ~P~Y.lic:tc.
,

~.variab~ are said t~ be negativelr correlated if for an in~ in

, the .:Qf ODe vanabJe theJe JS adecrease m the value ofthci other variable;
thal is tbc)wo variabb dwIgc in opposite directions; For examP~; the
quantity
c:o~odity ~de4 aDd its price areile8aliYdY rc1alcd.
When the pnC:C:,II1~ the demand (ex the couunoditj dccreasesud
when the price dec(eases ~ dem'and increases. Anoth,er example for

,negatively correlated VllriableS is the tax and dividend of a company.

~O:Correlatfoli"
,.,;; ,
" .,"', "
,

i/

ofl

, -'. Two vartables are said to be uncortelated if the chang~ iJl the value

ofone variable bas no connection with the change in the value ofthe other

:~

".uk

Statiltic:i

I7;_

Correlation
variable. For example, we should expect"zero correlation between wei~~
-of a person and ,the colour o(his hair or the height of a persollll.n4iti,
colour ofhis hair.
.

""..-.

Slmplt: C . o r r e l a t l o n , , ;

. Th~' C()~relation between'two variables is ~led si~ple corre1a~iqi;

!J'he correlatIOn in the case of more than two vanables 15 called mulhpl.:
correlation.
.~\:

Scatter diagram

~o~ider~';'~et of~air~dY~~~

/...'
~:

...
~.

.'

'I"

'
: . , _ . -. '~~~~r~

Fl. 6 ......~,

'

",".

..

FtB .
7
.Perftet NelGtivt

Urrear
Corrtl"tlon

.
..

Ptrfett PolltiN
U"eQT.Corrtllltlon
.....
.. .
"
,"

'

'"

Scattetd1~amsi~~:.~o~~:~~~~iC)f.~e ~elationbetw~cm~

it':

..
variables. It gwcs no iiif'ormatton abOut the degree of relabonsbip

between the variables. For ~A.uantitative~e~urement of the degree of

~lrCiliOQ
has given the formula..

relationship between two variables

. ..
.. ....",.,.

..

. . .

"

-,..... ,

:.

j . (

Fl.' 1

coiN.".,.:,

,"

.., . . .

POllt~ilJMtrrClJ;,..tlolf ..

Fi.' .

/I'I"tl" PJDlt-llnltIt

of the variables x andY"11

'example,...r rejllesentsthe heightsof:persons andy.their weights.A1o~,
;lhe horizontal axis we iepresent the height ank4100g the'vertical~4'
(' ,~weight Plottllevalues(.r,y) ODa graphpaper;Weget a conectionofd~
Thelfiguresoiobtainedis;called'i scatter diagram., Fr.omthe scat_,
diagram we. can: ,obtain-a ~rough idea of th~correlation' bttweeD,the".~
variables x andy. Ifall these dots' cluster around II ~e thecotrelatio~
called a linear correlation. If the dots closter.. around a curve,.,Ui
'correlatiou is called a non-linear or curve linear correlation. We can at'
get an idea of wllether the correlation is positive Of ~gative fioti1 i
scatter diagram~ They arc illustrated in thefonowing diagrams :
Let us

en f ,

19

; ..

".', .\:.~:;~.. ~~~.,~(

.\.

. Neg'atlNLlMtIt'CfI"t1dt1l
:,PiJoy 2 i , '.l' i.",>
I"
\

-,\

...

,\.1'
'.1",

(. r =

:.

-..l!.
(1

('

(1'

pis ca1led the product moment correlationbetwccnx andy and is defined

by,
'.,

_ 1: {X'~.x> (Y"~Yr

...: ,. .
~ ~'

.(

"N

p -

and Ox and 0y .arc the standard deviations.of X and Y respec:tively. p is

also called covariance between X and Y. . .

. I'tMltIN Ntllt-/_f;! r;O,I1',14J

. Fi&'...
.

.".

,'-',

(1x

:=Vi(X~Xi ' ..
1\1'

.,

0y

(
= Vf(Y-Yj~"
N

r'

s~tjca

.l8f

Corr~latioD
.

~"

, =

~ (X - X) (Y -

V!:(x -

X)2

r ..

r -

It is conventionally takena~x';;';X""'Xandy = Y .
1:xy,
wewnte, = ;

..; ... 2.:i:X

Y and hence

~:~"':':~'\~'" ,:~c'AY:~'~ \;.}t,~,:(!:;\-,,~.,:,".~: 1.;.'~ ": .. :,:.~. ': ....

The above formula is eXpressed in terms of deviations ,of the

variables from their means. Instead, if the actual values hf the

'obserVations are taken then

the formala can be wrltten
as.

.
.

, =

l:X.l:Y
N ,

.". N

N UY - :EX .l:Y

. '"N IX - (L\')2 Vii 1:~ '7,~n2 "

htstelld of the-;deViations from their:lJieans,"We"deviations arc'

measured from the value A, and ,B for X and Y

~l>les~y t!lking
',!('= XLA; dJ ~Y,~Bi,t~e ~t:r:~t~~if~~ffi~~ilU\~',~n'
bj(, .,
2

".

=
=

.~

L:

.. ~~ ... ~."

'-':~':~~-,:..:-,~:~ ~ ~, ..::..\

",

.:N~ i~.!

,'".'
'. ) ... ",

", ,".

";.'

(1)

Ltr ~F.

"NIdi _
( I d y ) z : ; : .

l:;~'

mean.

"

,-

. -

VNId1- _ (~)1

.....

-'

. !.-..... ;".

. '

~.VN~._(Ljy)2

" 1~:"~iY.~~ fr~qUl:ricY~t~bU,ti~ofv~~plesxaD4YC9~elati9n

, -_

N~fdxdy
,

..

"

.. ,'.

' ; " ' " :,' ;', '. ,

- Ifdx .l:fdy

VN IliJXl ~ (I fdx)2 ....-JN 1: fdi -

(1:. fdy)2

Numerical value of the c:~~..tlOD c:oem~eDt

.The ~ff1pc':lt ofcoITclatj9n r liesbetween ~ 1 an4 + 1 inc1~ive.

oftho~e valuCs.
. < ' . , "',.
(1) When' is pOsiiivethe~t.Uiables x and y increase or decrease

together.

(2) r = + 1 implies that th~e is a perfect positive correlation

betWeen variablesx and y. (See scatter

~am 6) .

..:i"..!.:~'>:' :>'~:"'" ;'.

~.:' ~.':
(3) When' is negative the variables x and y' move in tge opposite
direction (i.e.,' as one inereasts tbe othetdecreases). .'. . " . ,
~1

r
r
.r

'.. ~

'-';\-..,;\':'.

'l.::.:";:'i'-""

.-: . ".

.' ,

'.' .

..

((5) When' ::: 0 ~he two variables are uncorrelated.

' , _ . ' ; 9'. '

This fonil~l~ is

\ '.,

>

Thus. we have the foUowiPg (Qrplulae for calculating the correlatiori;

coefficient between two vaiiablesx'lU1dy;

VNri.(1:.y)i

" .,.

r(4) When , = -1; there ,is a ~t'fedDegativ~corr~~tion (S'ee

Scatter diagram 7).' . ..'

,"i'"

Vw-~
VIdl-~
N
.
N
.,. ...~~d)'-~
"NW - (Idt)2.

'coeffige~fisgiven bydi~'f~rintila;"

,.,,:

V"IX2 _-cj2 ' V}:~ _mt

.

Nr.; _(Ex)l

This formula is applied when deviationSfor,~and Y series are taken

;from somcuslimedvatues. "

;';"

"

xY _

,':t

"

if no ,assuD1C?d aver~e ist.~e~ f9r x~qy~~,nes.

_
N Idxdy - La Idy

5)

..; ~..{~ ~"~2

".

N Uy - ~'-~.Y"

The formula for the correlation coefficien~ , can also be expressed.

in the form,
'

..

used.when devialio.s 'are .me'alured from th~:~'

';"

Rank Correlation

. ,..The
calculating,' :is'
on the

assumption that the values of the variables are eJ.3.ctly ~e~&ura1Jle. In

".&O~e situationsilmay~ot be p~ssible to .gi~e predSevaiue5for~he

( vanablesi.'In' such' ca.ses we can use another measure of correlatton '

coefficient caliedrabkeorrelation cOefficient. We rank' the obserVations

. in ascending or descending order using the numbets 1.;2j 3, ;~; ..... nand

measure the degree bfrelationshipbetween the ranks' instead of actual

numericalvalues. The rank correlation coefficientwhen there are n ranks

in each variable is given by the formula (due to Spearman),

:~i~'~llJ'son'sformula ifQ~

.;j~~~'~k~~ji:;'i').i':""-""

<!ev~J()ped

'1'

lj

l!i3 '

Correlation

c;=L~" fiEiil': .
.

'.

II

'"

(II~ - 1 ) ,

where d = x - y is the"differericebetweeitranks oftOiTespOnding pairs ,.~

, andy.
.
';~:1
ob
, . ...
'.,

. .
.
.~~
Ii = number of obselVatioDS.;~

.'

we

d
Note: TIe nnks: When the values ofvariables x andy are Biven J

caa'rank the values iii each of the variables,anddetermme: the:W

(~=::zrc~~~~~~T~~1
correction (actor in the formula forp:'TheformUlil forpisgiVeli by, '. '.~
.

,r

6['4'- +

Ln<m2..1J.] ,
;: 1 - ' , '
12.'~' \

p..

2et - 1) ~
12..
.

3(3

<.,

"';"

..

... .'

,.

.f:'~:
is unaffected by ~e of origin of ~f
' 9

....,

.. 1) The correlati()n coeffi~e~

reference .tUld scale of reference:

"1(2)

~ .... '

'

. ..'

the+value"
oftondltion coeIfi.....tlies be~:"'l ~. +L .~
1).
.... ....
':W

x...
y ,
x

"

It

. :'.

'.,

5
8

3
S

-1

10

2 1 ...

iD

12
11

36

48

,,!.

.- ".:e...

{y_'j)2

(%-i)(y~

25
16
0
4

25
12

-s :,. :~ ,~i~~ ~ .
3" ..

36

"6

II

'16

3
0

X.

"1
4

"4.. ,g

.:;,

"16'
;

64

.'

. '1: ex

'r

. V1:. (x -

J'

'P"

~,j :

-~"~.;/ ~

-'<."

~~"~'

V1:. (yr

,l "

.....

65

. 1:..l)I .

v.~r- {l:.y2
~~~ .. ~.~.._~.-.""

0.97.'"
-, ,".

12

12

,'.'!"'.

i) (Y",,:v'"

i)2

65
.;()4.
. .:".'

" ..."t"

==,().~ ..

","

.. g.'.

Q'

.4.,

70

y =!:1. _ 48 :""
II -.6" ,= 8.

".I~
}~
,\~,

10
II

..;.;.;

9
U

ro

y-y ;.. (X~2'

xTX

" (1.) The formula for C()JTelatio~ coefficient holds only if there is a
linear correlatiOn between the'variables';that is the relationship betWeen
.
,....
,,~,
thevariabI~s
is linear ;:~
':
';'>~i
(2) CorreIationlheory,does not establish ca4ual,.:eJatiODship:\~'
between the ~ariables. does:not $uWst UJatthe 'V~altions ,in are )~
caused by vatiablc$. in x or J;ce. versa. A high~ne1atioil :between, \iJ~
variables x. andYIIlaY describe any 'of.the t" 1Iowingsituations; . .
'::5'
' .

3
4

Y
3
4

,"

-.:

1
3

Solution:

("':" 1 ~ I' :s

UlnJtatJODS

'.

Exunjle'l: CaIcutate the coefficient of correlation between x and y'

',< . froIb tlie following ~~ta :
.
.

12.:

~'

./

11 .

Propertiesor COlTeliltfoD coeJlldent

'",.

'.

,;(,.2"':1)'"

,s'~~,!~

<a> Variation my js tauscd by~.inL .

':
(b) Vmlition'mxis'Cil~bj vanatf~~;;:: .
<c) x aDd y are jointly. dependent
' , i, r,." J
(d) The~rrelationbetweeD~ andiY. maybe due to ~ce.
CorrelatieDs are sometimes observed between variableilnot
ronceiveablybe casually related. For example, if a high correJation u
found between the number of births and the number of murdei'fii:1'i
~try it does not prove that nWDl>erofbirths ofbabies are c:Je~~ed
by Dwbber of murders. this. tn'e. of correlation is called . spurious
correlation or chance correlation and they do not provide any casual
..elatioriShip between the vanableHnvo!ved'
.. .
,

l~,

wherem stands'for the number of timen' rank iStePtated.'porcxample,J

if a rank is repeated 2 times' in x-series and 3 times in y.senes, .the ':~

correction factor is .
\i'

..

"'f: -:":.
;, ~

'::}

.' .' ,sfatisti~

t:',t"
x
1

6
7

8
9
45

2y:4O

~,('''494 ".~!. 212

:t~'1288

, ,N

. .N

288 _ ,tiO'x40
;

w~

:,i

";~

", 10"

'",: '48'" '. "'i"

=~=O.58

83.475

1234
12
11
13
1S

S
14

6
17

.',

".

'"

12'
22 "

~'.

26

27' , . 29'" 33'

'37

"n

(i;l.u. B.Co~.
. May 1~) ,
.

:.i:'2

''''':2

19;;;.,',,:' ;";6;~<\:'':.r'-- '''' "

12, .... 'l2" , .;;:.c4'.,{\; .. ,=!<- '---'16
13
26...,.3 '. ,.~l
9~~
\ "
16
27
0'
o
0
17
29
1' , ' 2
L'
20
33
4
.6
16

~~,,":'"

'0

7
16

y:':,
x-A~~ y-iJ.-F-~<:_.. ,
;.,.:,.,....
::"....

.~':::f

Eumple3: Find the coefficient of correlation bf~~;~ andy.

x

, '. :'. "~i

0.9.:

h-'

:f'.:' ....

.\

.',

Sollltlon:

288-240

19"

... /\i:

=4494,.- 360, v'~lt-:-,J6()i:, ,;

v'i34 x 52

;it~"':I';

:.

V 494 - fH V212 _ ~ ....

:'48

56

" .. ': ~~"

...

-"

~'~

.r~2 ,.'--~;iYOU YOU

10

10

0
2
2
12
12

=.T:;::,,15 . ~.
:', ':
>IX)'
56 ' ;
=" ,'.' ~
WT':J'
';::;"'.n'lr.~ =
- 2'
u-.'

~:

~':~,'!y -y

135,

12
12
4
0

EXample'" :.;Ca1culat~lhe coeffi~enl of cO~elalion between x andy for

the foUowiDg
data :
",,")':;')';":
....

1 I;~~"

...; 1:J\~@i ...

=-

~y

" IX)' _lX.Iy

,y

dxdy

, .. ~

""~~""''''''''''''''~'''"

'ilI'",

-4
9
-3 '
16
4
-2
,0"::" t
15' . ' ... 1'"
0
14,'\; . 0
'.)-1'<.,0
., .. 41
l' '
17
1
2
16
4
1
2
1
4"
.
19
9
{;:
16
3
18'
-3., .... 16,.. """.,... "".,...9
4
......,.".
135
0
0., ,," 66' '.
60"
,.'
45
= 5 dx = x-i
9

><60

dx2'

-3 . ' ~6
. -4 ....9
"4
-2

12
11
13

2
3
4

,<

y~y

x-x

8
19

25
9
18

(M.U. B.Com. Sept. 1985)

ni

37

193..,,: ,::':1;;,"
.,-; ''-:\;",,~'. .

':.

7,

x = 113::; i~ ,"

,''';'

l#4y
',C'.

~.;.:"'~f"

'. U"

20

.3

4 ..':
2
36
24'
, <'~lO .< ,,'::81
100
. 90
"\
4:',:: "'89:';;:"230'" 187
~,,~'

Y ~,'_J:l_3' :dm .
.

':':'M

':"'~',J

..../

Ilf
I~l

1(1
11,
~

!
l

I
j

n
~

I:

~~~ lI<,IoilIIlOn

.'- < . . ' ,.

= 16, B
x- 16

y- if

Take, the US1IIDed \'DeaA .

Q= x -14''';'
~= 'y'-8 =
\

~~qs~

... 27.

-1091 _ 0 X 2

~'" 'i:~_

='

~A...-I..

;:--UJ'

Ltr .l:4Y

-:"

.N

'

V~7 ~ t i ',
7

<..waple ,: Calculate the PearsoD's~fficieDtofcorrelatioD from the

da~a using 44 and 26 respectively as thc onPt of

x.,y ....

V.~~ 472 , .

~x

,J>Y' . 29

, uowmg
. dat~.. :

\'

x
y.. ,
SoIutl.. :
;

10

14

10

14

15

~.

~"

74
61

,.dx
....15

-11 .

15

;50

. -'10:'

28
'35

.sf

43

l.9.J.

26
308

3
.10
~

.'

..0

28'35
' ..,.

': dy

~": ::' ;1.; ,

; U ..

23 . .;.;: 22S ..
10

-1
3
-8'"
. <~2S"

:1

121

100
9
1~,'

48

~,.~,
~ \~ }~.I.'.~:.~'i'

.~

n,

,27 . 2941 '30

~.~.

ttJ;

.529'."

"..~:

10M"

1328;':
.~.

43
44

29

-1'3

31

'0

46

19

40

18
19
1:1

2
-4

2610

40
42'

-110
10

57

29
41

. -~
-6';'

30
26
10

-2

";'4~

-80

.9

-3

0.. .:.

25

;J
;~j.'

dx .. X - 44,';

9
.225
16

...16
169.
-6" - 2SS

~ ~')'-

49
-14
6432
49
0
1
-2
1
1

4
36
16

13,.
-5

I"'.,tg;,

.~"5
-lOOI

3
15
:4'

drdy

1 .

-74'
-8
16
o.. . ,., ,;~,
0
-2 ""1
4
1
1
1

1:1

38

-34~

9
. 64."

d% '.

42

dxdy,

529
100
1

tJ?

tJi1-

dy

45
42

-6
-90
-16 .

2S6
704

-208
-306

26

l:drt.b' ~ ,Ur. Idy

"

dr -.1-25

r -

31' 1918 . 19

44

"L."I,;': ,-~,;.'

z _ 15().lS
6

;~~

.c.

,.:: :.:.;

;> I

.:i1

10

~,~

'::SOIUtJOD :

;.

186.43

~;M

:'.\

~ _ 0986
,;

:~':
.1'1FZ'?r7 ~ .100~ _

. ,:-~
,~~ ~.'4~
.

~
.Exa_ple 5: F'md the coeffiCient
. ofcorrelition
\t~ 'l~,
,
.'
.
.\)1
betwecnxandy from the ':~
-

.
-0.91

.::1

r;,V. /'... .; fO:'!inB

~ tX4)
'1

"-1091'
. :_'n7m'T: . ;_-.fK4JC2i..HA

usy.

Vl($~O ,V 1328~~6

.,

.V IH .." {l'1r)1V
,"~i _~

N:
N"l

187

.- .~

....

N ....

VUz2~~)1,.::J.iti;_ ~2
(-5) ("-6)

, .', '. 2., .'. 1

.V
. r,al-,~ V"J:dY ~ ~
. '
No
" '-N

-v:-..-.;.,,-..;. .

-306 - -.. 12 .

-(-Jl .V
2

2SS

49

'::'11
']04'-

(-~)

n,

Correlation

Statistics

hJ89
\-

-306 - 2.08
v'255-2.0~ .ff047~:"

v'232;92 viOl =, .....

- 308.08

~ample,8

- 308.08

."

= ....,0.732.

A .. '

Example 7: In order to find the coefficient of,correlation between 1..

variables.t andy'from 12 pairs'ofobscn:@ons, the foJ)owi~
calculations:Were made:
'.. , : , 1
/

. Lt ==

.~ '

*'), ". ~'.::!:'670 , " '. I y7..::: '285, .

Iy

1:ty

=334~jf

On subsequent verifications, it. was.founrl th~(tht pair (t

=:.

.,j~

y = 4)was copicd:'wrongly, the codect \llllue being. (x = 1{),y =:-14). Fj'

Ihe correct vaJucofthe correlation. coefficient (M.~. B.Com., May 19,'

u = 30

Solution:

U = 670

lXy = 334 .
.' N "';.12

Iy =.'5
I i = 285,..
Wrong pair = (x = 11,y = 4)
Correct pair = ~ = 10,y == 14)
elm'eet values:

. 2

Ix2 _ (lX)

. 'Y.:.,

'V Ii _
'.

...

(Iy),,...

. '. 1~;

~~\~
'~'"

430 ....;.56.25 .'. ,;'

12

.:~393. 75, ; \ = ':393.75

. --

dy

.0.;

18
. 10
8
4
3

-37
-30
-1'6

14
6
4
. 0
-1

. 1369'

~7

-2
10 .'.

2
2
,0

-4

',25

-4

625
~.
4667

..

r~I

V '. IdY~';"~

.,'..

1(l68'':'' .5 x 8
10

V-

52
4667 - -

10

....

82,:
298 ;,...
., . ' ,
10

= v4667 =TI v298 - 6.4

d,O 775

508.27'

16

-64

1
4
4

,.-20

298

Idxdy _ Idx. Idy

.
N

y. ,' ..IcW- "-'l:itr

('j.il

36

16
16
9

dy=y-4

"'i.

256
324

28. .-3
58

48

r =

100

-1072
-1072.
= v4664.5 V292Jj = 11~.2. =0.91.

d!Y
-518
-180

'~49
.:. 4'

16- ''';fo'J

375

900
256

r2.

18

dy2
196

1068~A

= V649 - !'l[08~:::\.1'.~5~"t8:'5

9.0 9.7 10.0

8;8

dx

",

Of

8.2

, y

'152 . '

.. 29 )( 15":;
. ;.430 :-. ". . . 12";';":~" "
649 _'29 2 /

'" .' .

dx =x-37

--- ..'

',:

9.8 9.0 8.8',8.4 8.3 8.2 8.2 '8.0 8.0 8.1

SeIU.~o~:' .

65
...f!.

'. '"

.
Multiply outputs by 10 and then subtract 35. MUltiply the cost (in\
thousands of. Rs;) by Hi and s~btract 80.
(M.V. B,Com. 1978)'

30
35
47
53
55
62 ...
'"'r

4.2 5,;,~ 6:5' io

3.5

The correlation coefficient is unaffected by the change oforigin and

the scale.

Outp,utQf (;elI'S
(in Iholls~~~t:
Cost of cars
(thous,lln~ Rs.):

21

lX = 30 - 11 + 10 = 29
Iy = 5 - 4 + 14 ~. 15
U .= 670 - 121 + 100 ::::: 649

.Ii 285 - 16 +,J96 = 465

Uy = 334 - 44 +,'140 = 430

N = 12
r

:fiQd the~fficie~tofcot:tel~fipnbet\veenoutputaJ,ld,~ost
.. of an,.alitoIDobil~ fa~tory fJ:omthe folJ().wmg dilta :

o
2'

':"'32

-72

-lQO
-84
-1068

"%J!'

Correlation
(1)1

!''v(.('

ExaDiple: 9 The following ,table 19ivesthc age~distributioQ i of' tltl

'JlOPufatioa 8.Ild,thenWhber of WlemJjloyed in a town.

r--' Age

I Numberofperso;;;-1N~,fJet'(j/:;"';"
unemployed

. ' ill '000

'55 .1;0

~"'50,'

j;

.. " .."

related?

96lJ'
20
1,600
:,~~: " ,.. ' ;,1,600,' .

'"

s:o

50.;.60

60':';70

','

':>'"";1

::.~:'

:.'('.:!d:-':

:. .":

'.';,~"':"''''

. !

, ;. I

:1

y)

25

l'

35

.dx
':';2

dy
-4

dXJ

dy2

'. 16

-3

1
,~
'1

'4
10

225

45
55
65

20

-1
0
1
2

Z25

34

.0

3
8

Letdx

" c

x.:..

-,-2.

15

"

4
5
8
9
iO

:. '6: ..'.

.. 3

~ ; :

44 ...

-J
:.

. v'IO

10 - 0

44

","" , . "

Ox'9\,
~S'

V263 _fl
..

'

,~S

~. =-0.88

"

""

"~"

"

,,~';;;/:.;:;.,

f~

. 2"

9
0
4
9
4

'36

"

"i1ie.~:~lmkC{;rielaHoniSgiveh~Y' ,."
,J': .,.

p ':;;"u

'1" ..'.:' .ni6';d~o'!' .. .

~-

, = ,1

9' 10
6. 8

I .

4
1
1

o ' ~..;..",

9
4

.. :,

d2
0

-3

-2

."

V~_@r ';;~al-~:

, =

'. 9:
10.,

,rdi':'i~\, -; .U:il!:dY","-'\ r

-1
2

'5,

""I,"

,dy=y-S

."

-1

0
....2
1

1
4

." 7'

~.;" ~

10

~:
2

,263

45

x-y~d

;Y

Solutton : Let x represent the' 'age (mid~value of classes) and ;Y''

represent petcentage~eniplo~.
x

8'
10

7
7

. . . . .' . '

X"
":~";

. : '.~

'"

."

56
'3
9
. .

:;

Fmd the cOefficient of correlation r between the midvalues of thcj

age groups and percentages of unemployed m. different age-eonstitit~
.

3:' 4'
2
5

~ ... To what extent is the knowledge of students in the two subjects.

. . 1,100'

~2:1~

ii8u mtl1e to: ThefQJlowiiJ.g;are the~ ranks obtained by 10 students in

" SlatisticsandMatbeJ118lio;:

i', ' . '

Statistics:
'12.
Mathematics:
1;4
. : .
.

40 ~/400

20-30

30~40

~~tiCs

~; ~:

"\ ~"

..... I "ie;

"i, . ,

W(N~'''''1)

:~

~i;iij

6)(36
,-, iO x 99 = 1 - 0.219

.
= 0.781.

Example1.l: :.TJJi 'c.pmp~tiiciis' i~\~ beariiy cOntest are ranked 'by thre.e
judges in th~ folloWing oIder : . .
.
.,
'. ;lfrstjQdge:; 1

'3

/. '.

Second-judge: ' 2
Thi~dJildge ; .' ~.

6
7

4 7 10
5' Hi 8

9'

10:

5'

8' l'
6, 1

,t,rs'~ the method of rank CQrrelation cOefficient to &eterminewhich

p.ir ofjildges have the nearest approach to cOmmon taste in beauty?
Solution:
Let,; y. t denote the ranks by ~st,2nd, and3rdjudges respectively
.,t:" ,"

Comlalion

--

x
1
4
6
3
2

Statistics

y
2
6

~3

5
4

7
10
9

I)

7.
8

3
8

10
~

dxy

'dyz

,,1

"':'1

7
'4

....:2

-)

-1
-5

10

-1
-3
2

-1

9
2

-2
5
2
' 4'

6
'",1

0,

1
'2
'0

dZi

-2
-3
2
-2
-8

25

-2
6

25

"1

1
1
1

4
1
1

16

= 1 z - 1 -

N (N2 - 1)

6LJx-/'

= 1 _ 6x 82
,
10 x 99

6:Idyz2

_ 1 _ 6:x 22

Iv (N2 -

py

pzx

-= 1 _ . ,6L!zXl '
N(Nl - 1)

'
N (N2 -1)

+45 + 2(2;2-1l] .

4
0
1
4
'0

22

;::: 1 -

"

10

= 0.503

= 1 - 6(~O.5)

0.04

:z

,;

v'

92

89'

f!7

86'

Y :',

86

83

91

,, Solution:
, .
x
92

89
87
if 86
,'86

,n

,71 63

'g6"T/
68

Let RI and R2 denote the ranks

.... inx and X ~i'es~ctivel
R'I
Y
(j-R -k
l
"
~l;

"..

83
91

68
85

71

52'

63
53
50

82
37
57

" '. r:

1'
2
3

2,

4
~

4.5
4:5

,6
7
3

6
7

9'

":5 '

9
10

10

,I.,;, 1,

-1

'"

t,
" ,,~

'

Correct

-2

"

';'2.5
3.

"
-2 " ,

',2.25
9.00

4.00

44.50

"

82.5 - 3 + 7

UT '=

'
;', Correct p

82.5--:9 + 49
2

= 1225

6Id ,
2

N(N -1)

"

6 x 122.j
990

.
.~

0.248.

Example 14: Calculate the correlation coefficient rfrom the following tiilil~:i,
:~'-.

Marks in
Statistip' '

4.00

'l.,~','
"

'&is .'

9:00

'3

-'1
2

" ,

=,'1 -- 0,742 =

4' ,
, ,,' 4., ,

~1.5

... .2

6LJ2

...

.'.

86

= :i.

. 990= 0.5

53,- SO

~5 52 82 37 57
'(M;cJ. B.com. Apri/l985)

$olutlon :
N ;= 10,
p ~ 0.5

Wrong value of the differense be~~n ranks of one of the students

,
Correct value . ' ';;' 1;;;;}'"
'
'6'U:P
,
P -- 1 - , lOx 99,

'Esample 12 : F'md the rank correlation'coefficient for the foUowingdata:

x:

== 1 _ 6~5 == 0.727

1 -, 6x 158
10 X 99

'Since the rank correlation coefficient betweeny andz is posilive and

highest among the ,three ~fficlents, judges y and ~z', h.ave the l1<1ar est ' '
approach for common tasle in beautY. ' i , " " ' , : I ' , ' , " , ,',
.'

99

t,xample 13 : The coeffiCient of rank correlation of the marks obtain~a

,
by 10 students in twoparticU:Jar subjects was found to be
0.5. It was then detected that the difference in ranks in the
two subjects' obtained by one of the students waS wrongly
taken as 3 in the pla.ce{)f7. What should be th,e correct rank
correlation coefficient?'
.

_
lQ X 99 - 0.867

1) -

1 -

82'

pxy

'4

2
6[T.d2 +m<m
-1)]
'12

47

Q
67

3
4
-

72

Manes in Mathematics
52
'57 I 62
~
2
~
8
2
7
12
4
3
10
8
3
5

67

....
.~
, ,5',

Correlation

-s

"
1 ~.
"-

t""I

.....

co

'.:;

~
.......
~

.....

v
.....

N
fi

I"'

,-0
N

It

... .

)(

.r

'4)
"
/ ,''It
"

I; "g

...1Il1!
ate

......

... 0

,;:!,

...

'j"
.: .

f'

-0
N

f
., S;,

...

""

'.

...

;.~

":,'

. Ii,'

to-

II

"...

.M

. '

01

.X

dx

33
40
60

17
28
30
32

,'-:25
-5

19

co

...
'" '11"'
00

....

..,.
M

-2

14

. -,

6
17

30

22dy =y-32

..

."

i,

ClCl

...

00

l"'

...
0

1
M

01'"

t'l

l! ::;t
. I

or .

!.-, . ". . . , ..
-.;"

'3,.

8
i

,~

t-

~~

.,

.".

M
'0

I"'

'D

t"l

I"'

".,

'lI"'

.....
I~
S

I~

.....

'0

tf'l

.I

M
N

N
N

'"I

co

~_.~~;:;...

',

"

..~

'-,

,{
~

225
16
25
4
. 19~ ,.
0
324 - '-36
900
289
2970" .'570

450
100
10
0

108
510
1178

"

",

. ", ' .....

.

7064 . .
= '7068 = 0.9075
./17756 J3414 , 7788.1

EsaQlPle' 16 : I:tnd the coefficient ofCorrelation between r and y for the fol
lowing set of obServations:
.
x
IS
20
25 .
30
35 ,40 .

I:.

.9.Q.,~

dxdy

..,

'6xl178-'lx2

=
0

dy2

= ~6x2970-22 J6x570-2 2

I"'
."

(I . ;E Nov 94)

dx1
900.
625

dy
. -:-15
.. -4 ....

18"

;i

~::-~J;~,':' ....
,- JNr.dx1. -Cf.''I!:....J~dy1. _ (Idy)1. .'

M
'It

00
'D

z,,,

~;c,'

...,.30

83
38
95
49
194
392
.dx =x-65

r"

.~

;~

.
Solution:

.5
......

00'

;;J

'Example 15 : Find the CoeffiCient of Correlation for the follGwingdatli

C"l

".;

--

'0

-~r

I;:

~.

,.

oJ.,

,;.', -I
I

M
. .

0\

)95

.Business Statistics

15

90.5

_ WO.s,
di

140.9 _160.1

dy .'., .tJx2..

170.8

ill

dX.iIx

-3

9.5

90.25

-28.5

0.8 '

0.64

'-1.6

20.7

.1

428.49

-1.6

'40.9

167.2&1

1 - ' . .'60.1

.. 3612.01

. 60.1

20

1008

-2

25

120.7

-1

30

1409

35

160.1 '

40

110.8

165

783.8

-:-3

120.7

70.8.
20Z.8

5012.64 .

19' ." 10816.84

.J~

ilY

141.6
150.9

:'I~,

1%

197

Let

xample 18 : Find the coefficient of Correlation for the following data : .

x-30

dx=-

Ix I

dy=y-l00

r=

NIdxdy-UixUiy
.

NIdx 2 _(Idr)2

x
65
66
61',
67 ., .

6x J.50.9 -(-3(207.8

- J6'x

19-(-3)2~~6x1081684-(202.8)2
905.4 +623. 4

1528.8
= 1528.8 ::::0.9246'
JIlSJ23773,2" 1653.46' . '

n
344

dx

dy

tJx2

elf

dxdy

-3

... -2

,;",2

-3

cr~

10

-J .

-1

0\

4.

12

10

tv

'0

-0
. '0"

'4 .

11

l'

1
0

13

2'

...4

14

j'

3'

.,. . '9

., ,9

28

77

28

2&

:,'.

let dx::: x-4

,r:::

:::

7x...26-0xJt

~h x 28';"0..17 x28-0

26'

=~=0.9286

28

10
69

12
11

-3
-2

72
72

69

71
552

0
0
2

dY

9'
4
'. 1 "
1
0
4
4
16
36
. "'.

.,..4.

-1

..

dxdy
6

4
1
16
1
9
0
0
4
. 44

2
,4
1.
0
0

o.

':?:\1:.
l"
"

i:i'

. 8
24

dy.=,Y-69

,.. ':mihiy- tdxUiy

r:::

JNIdx 2 _(~)2 ~NIdy2 _(UJy)2

:::

8x24-0xO
:::
24. :::0.603
36
x 44 ..136 x 44

.Ja x -o.Ja

.9:

".:{

, EXIlJ.Dp1t:
find tile cQ~fficient of <;:or:r~1ationbetweening!,l~trialproguction
and export using the follO\\iing data and comment on the result.
.
30
32
32
. 33
Product (in crore tons): 27 28. 29

,.

., 9

Exorts(incrorelons):l7.

. :;26,.:,::',

1819

19

21

20

21

(D.E Anna University)

ji'.i;

JNIdx2_(r.dx)2~NIdldIdy)2

'fix'

dy
-2
-1

dx

I
.

69
72

dx:::: x-63,

dy:::,y-ll
.NI.dxdy - IdrIdy

67

-1 ..
-1
0

..

17 : Compute thecoefficicmtofcorrelation beiWeenx andy from the;;

following data :
. .
Ex~ple

.-

66'

y
61
68
65
.68

68
69
. 70

'J;:=11=4=_9=.Jr64
=90=1.0=4=-=4=11=27=.S=4

67

6 8 . 6 5 ' .68

(B.EBarathiy~r Univ. Nov.'95Kamaraj Unh'. Apr '96)

._ ..._.. ...

~~dy2 _(Itly)2

65
61

;.~;

x.
27
28
29
30

I
32

.. 17
18

. :.A9 ..
19
21

dx 2

dv 2

9
4
1
O'

4
1
0
0

9
31

dx

ely

-;:3

-2

-2

-1
0
. 0

.2.

> -1

32

20

2
2

33
211

21
135

3
1

14

dxd
6
2

,199

.:$jkess Statistics

198

d:t'=x-30dy=y-19.

x
35

NI.dxdy.-. r.dxUly.

r ;:

.~N!(lx2_('dx>"Z ~NLdi-(r.dy~2

1x 20-]x 2

J7xjl'-'F~7;d4":'22

138
'
; :138; :--;:
0.968$,

'~

J216.jg4-142.49'

\~
r~:

Examllle2f) : Calculate Karl PearsOn's CoeffiCient of Correlation'frorn th~

foilowing data, using 20 as the working mean for the pricemd 70 as the work~.
ing.' mean for demand.
"
..
.
,~'
.j"
. Price
Demand

;.J'J__ '

- .... " ....

32

56

53

20
38

20

19

. 20

21

22

r ;:

78

75'

66

. 67

62

58

..

.r

di(x-20)

14
16

84

-6
--4

17
18

78
70
75

-3
-2

19

66

-1

20
21
22

67
62
58

0
1

23.;

69

3
-:-10 ';

r;:

2 '.

dy(y-70)
14
8

0
.5
-4
-J

dfl

dY .. dxdy

36
16
9

196

-8
-12 ..

. .,...10"
-:10

64

-84
-32

25

1
0..

16

-10
4

1
4

64

-8

144

_-24

.100 .

6.18.,

80 "

;:

~ N~,fx2 ..., (r.dx)

.J?

~ 1~4 ";'"i~
'

Age of Wife :

I 32

30

56

54
85
91

59

32

53

20

324

400

20

324

3~O

0
0

400
0

702

584

600

2J t.,rr.dy2 ~ ( r.c-M

-5
360
0

..: .....

(73,6.3):~72,52)
di-

-25
-14 .
17
23

289
529

II

1089
()

11

-1,1
-10

4
39

dx. :: X - 68
r

-20
-24

40ll .

625

()

52
. ~ .;

196

-33

72

25

73

68

dy
32 .

27

-9

. d,v=' - d'Cdy I
-800
.1024

dx=
625 .

81
729

8440
73
.59, .
. 63

79

20
20

25

7)( 60
.
"
;: 0,937
x702 ..17 x 884

y
105
98
53
49

95

=-0.954.

43

-I

I.

Examille 2]: Calculate the correlation Coefficient between the age of husband;
and the age of wife from the following data:
40
31

12
-16

dy:: y-33'

JIO x80- (-lO)2JlO x 618 - (-1 0)2

34

9
64
1

Nr.dxdv
- r.dx l.dy
. ,

43

,,",;

I Ageofhusband: I 35

16

dXdy'"
3'

-8

(95,40), (68,73), (29,59);

~Nr.dx2 _(Ulx)2 ~Nr.d.v2 _(Ufy)2

.-

Solution'

.',Nr.dxdy--: "i.dxr.dy'~,.' . . ,.'

9( -184) -: (-10)(10)

, Example 22 : Calculate Karl pearson's coefficient of Correlation for the fol

lowing data of prices and deriiand~~J~il05), (54.98), (85,53). (9U9). (59.84).

, -30. <F;~
,'I

-1 .
-3,

Let d'C =x- 38

d.l

dJil

-4
2
5
18 .
-18

33
231

266 .

18

Solution :.

32
30
31

16 17
70

dx
~3

34
40
43

I 14
84

' 121,
25..
16
-21 ,
..:,4
2611

I'

576
121

196
100
441
4572

dl'. =.v- 73

IO x ( -3320) .., 39 x (-54)

.'

JIO x 2611- 392)10x 4572- (_54)2

.

-33200+2106

.J261 10- I521.J45720 - 2916

:: -0.959

-35'Q"
-340
-552,. "

-99
-891
0

-1,5+.,
,..50

-84
-3320

I.\ I.

:~\

~-.

E . ;"~le1.3 ; Find the Coefficient of Correlation betwee;X ~n~ y fro.~.]f

ollowmg data :

10,
Ex :: 60,: ~v:: 60,. Uy
Solution:
n::

:\~

=305,

:u-2 = 400,

/;;'

. '. '('-

Ey 2 == 580 Of

r ='

J,vIdx 2 _(Ldx)2

lOx 305 -60 x 60

,<S80 - 60 2
::.

=.

3050 3600
J4000-3600.J,800- 3600
,.

-550
= -0. 5903 X~
.J400.J2200
)i

='

.
:~ :.~

"

' , '

..j!GmlJle 24 :, Calculate the-coefficient (jf Correlation,from thr following ~~t~i

n:;;; 0
Ex- =
Ex = 50
Iv
='..;.30 r.v. 290
..
. = 300 LxY
. = -II' ~,i
~~:

Solution:
r =.

NLdxdy - EdxEdy ,

l\'Idx

(!dx)2

'

~lOx290-502 JIO(300)"-(30)2

~ample 25 : Find the coefficient of Correlation given

Cov(x,y) = -16.5,
Varer) =2.89
Var(y) = 100

JVar(X)Far(l')

-3600
:: -3600 :: -.2146
.J1224.h300 1677.86

-.:'."

'

: A computer while calculating the correlation Coefficient Qt

~een t~"o variables x and y from 25 pairs of observations obtained the follow
ngresults:
'1;.10.
N = 25, Ex :: 125, ~y = 120, Ex 2 = 650, Ey 2 =460, rxy = 508
it was however discovered at the time of checking that t:wo pairs of observa
ti9ns were not correctly copied. They were''}3ken as (6;14) and (8,6) while the
correct values were (8,12) and (6,8). Prove that the value of the conectcorrela

!y2 =460-(196+36)+(144+64) =436

I'.xy :: 508 -(84.+48)+'<96+ 48) =.520.,.

'

I..

~:lk;

Example 26 : Calculate Karl Pearson's coefficient of Correlation between .~~

and.1i for the following information: ;
.
\~

Correct

r=

NEdxdy- UJxIdy
;:===.===
2
JNIdx -(yxi4Nr.dy2_(Edy)2

25x 520-.125 x 100 "

y:: 12E(x-8)~ 150 Lx =120-E(v-l0)2= 200 '

Iv:: 130 L(x-8)(y-l0) = 50

- bSx650-(125)2 .125><436-100
13000 - 1250.0 .

,
Solution:
TakeA

,. =

=8

'..

lv'dxdy ~ !dx'i.dy
-

- JI62S0 - 1562?JI 0900 - 10000

J,1V1:. dx i.- (r.d~)2 JND,1y2 _ (UIy)2

B=lO

dx=x-8

dy=y-IO

500

",
'~~-~

:M
11
.. ,'

,
i;-

\11

J :.

"i '

,~,!,;;'; :~,

tx 2 :: 650-(36+64) +(64+36) = 650

-16.5
=:jffiO = -0.97

.ji.890

:~:,~

Esample 27

Solution :'
r=

~f:~

~1800-576J1400-100

Solution: N=25
Correct Values.
.,
. /
tx =.125- (6+8)+(8+6)= 12)
!y= 100-(14 +6) +(12+8) =100

=0.3819

V:

Cov(X.\")

,,::'=,::::'= = = =

2 '
tion coefficient is 3" ....

~Nr.dy2 _(Idy)2

10-(-115)-50(-30)

~.:. ~- ;;~;. '.

600-;- 240 '

~lVr.dy2 _(ttry)2

-JH)X4.00;;'T60J2~10

. ':

..",12 )(50=24 x 10

~J12 x 15d- 24 2 .J12 x 200-10 2

NEdxdv
- EdxEdy
.

r=

i~~~

r.dx = u- ~8 =120-'96'= 24
dy = y-l~
~dy = 130-120 = 10

,:~

~J

Blit~il.ess Statistics

500.

=J625 x 900 = 750 :: "3

202

C9rrcl;

"

,"

_,liS

.,;~

Example 28 : Find the coefficient ofCorrelation between age and playing h~'"
from the following data :
Age(years)
No. ofStudcIlts Regular Players
15-16
16-17
17-:-18
18-19
19-20
20-21

17.5 .

20

26
d4

37

ISO

18

120

200

,0-40
I-50

18.5
19.5

15

120
IlS

.20.S

-2
..:..1
.0

15
12
10

10

2
3
3

9
12

x'

yz

24

lIS

28

44
0
0
0
0

28
20.

~, .

225
.. :-~p, I
, 144, : . -12 :
0
100
-12
. 100
10
1
4 ; ,81
18 '
9
-' . 144 .; 36 ..
794
22
19.....

_(~)2 JNIdy~~~(}4y)2

6x22-,3x68 1 9 2 , . . 2 0 4

=J6x 19- 9~6x79.-682.= .fU4-9 ..}4764-4624

-396

.J105lc 140

,-72-.,
-=-'-=-,5939 .

121.~4

45

43 '

i6

59
-; . 1

If
II,filt'"
r: -~

59

f
46

dy
-1

fdy
.. -46

fdY

ftdxdy

46

20

59'

,0

25

25

25

10
2
140 ",. 2

2
18'

49

20

:-1

'

~f

f!

. 24

40
HI

32

96

'~.1> '~123
26. '. 30
'76

. ...

=-J

. ,_ ~dxdy - Ldxtdy .
NIdx 2 - (Iih)2 NIdy2.-,- (tdy)2

J140x

140x76 .... 49-xl

.
. '.' =0705

.. ' .,

123-49 2

J140x 111-(-1)2

'"

. ..

..

.'

xample 30 :'From the following table of bivariate frequency distribution caJ

. ulatc the coefficient of Correlation between heights and weights ofchildi'en.
Height (in inches) ;' . '
'eight in pounds 40-44; 4~8 48-52 52-56 56-60 60264' Total
440
60'
104
35-55

24

88

12

124

75-95
95-115 '.

32

48

12

115-135

4
4

8
4

55-75

P5-155
Total

40

84

100

52

20

r'.

'59

', . .
...::'

.':...

/ff.dxdy.,: 'Idx tdy.,. ;

2

t;~

xy

r=

'

g37

68

/vr.dx

~ 14

-1

-28

\:::1

I:

25
35
~ 26 .
-

Z4

..'y
.y=-
. 5

f~

!'O
'}1!

tion :'

Let

50
45
60

jjmpJe 29 : Calculate Karl Pearson's coefficient of Correlation}?~t,~~~11x

as distributed below:
~"
I
.10-20 20-30' 30-40 40-50

. 8

. ~.,~

'. _ .

It y from the bh'ariate sample of 140 pairs of x, andy

,.

, . .'

-30

. ,~O

'-20

75
-'
-60

PJ~

,_':

,.. "

150
162
170
180

i'_

Statistics
- -.

20C'
270
340
360
400

' . .'
....
.
(C.A Nov.
'Solution : Let x denote the age mid-v~ue and y denote the percentage of
J a v - ' j : " ,\~;
.dents
. . who p
...
x
y
15,5
16.5

"t~:,_.ll.l.:

"~
~f".

,2fj7

206

'Employee

Rs ' '!?y

R,

dJ

11

12

,8,

-54

10

14

J4
..

' ".'"

7.

,4'.

2,

-1

15

12

16 '

3,

6.5

' 0-' ,3.5,0'

14 " 13

,5

,0

16

10

17

11

15 ,10

-2

12

12

,15 ..,A

17

11

'.' i'-,

18

16

,7

6.S

d/

23
47
17
10
43

di

23
8 '
49

12

0,

36

4,

25

35

-5
-2 ' -0.5

d2

"

y
30
33
45

set of the data

(ii) Calculate 2 appropriate rank correlation coefficients
(iii) Write a brief report on your ::indings.
Solution : Let x denote the score 'in edu<;ationa! test '; let y denote the score'1
, apptitude test and z denote the as.;esmentby pers()nnel office.
"
(i) Rank each

R"

.1)'

p.

).

1
I '

' 1

28

31

4 \('-', ' 0

12'

n(n--I)

11
"

'I:"1"'1

h80

i:il
,~

'c'

Comments: The rank'c6rrelation coeffiCient bctween';educatiotiaJ. testiifi

' " '

"

',' ',; '"

,:

': ,:' ,; ,

',,:;"

,,",'

,;,'

,)j

': assesmcnt 'scorej~~~tiy~ 'ariqJtig~ arid\h~r#"ore,~j~e4Wl!8tio~~ test~

:;'. will ~orresPond:to higll ~bi\~1Y,it'\perfonUllnce.e(the.jo1>.,Tblm ~r50ns :wij(
.
'
.
, high edllcationaltest scoremay be preferred forj()b~.'However,: thereisa ne~
live rank correlation in :apptitude test:~~d a~s~srn~nHest ~c~~'~il~' h~~CI
apptitude test is not a good indicator of job performance.
:~

!1~

h!:'l

.=1-~=O.9
,i'~:Jik.' .. ' ,

8x63

',.'.

' . \.

';~

,I

= 1- 6l:d~i-~m2 -:' 1) .. 1_ 6 x (101.5 +0.5) = 0.2141

,~ i1:~

1ft

p = 1 6U
,,(,,2 -1)

',~~>:

, 8 x63

ti(,,! -I)

'. ,

-1

.; ~ ...

6x16
=1---=0,81

6'f."i

,1

16 '101.25 ;

=1

4,

'4,

5' . ':''':''2''',;,
3
5 ,,' 3", ,,2
; ~1
'1
' "2
6' "
0
6

0.25

tP

Ry

...

'-'"

- ' .

".

p.

~ ...

Example 34 : The rnarksotnained by the students in physics and mathematic~y

are as follows,
'
Marks in phYsics: 35 23
47
17
10
43
9
(i
28.

Marks in Maths :
3Q
33
45 23
8
4912
4
11 ~
Compute the ,ranks for t~e two subj:cts and the coefficient Correlation of,~
ranks,
'

of

'.

AJK

..:<!iJ

.'"

Stal1stlcs"\~

CONCURRENT DEVIATION

Method orcalculltting correlatloDcoefficient: Earlier we have seen

.
2 different methods of.calculating correlation co-efficient$'. (i) Pearson's '~~
t,nethod (ii) Spearman's method, In Pearson's method the deviation~ of x,~
and y values from their. means are considered for calculatil1g th '~i.~
correlation cOefficient. In spearman's method we consider only the ranks 1~
ill the variables x andy 'and the correlation between the ranks is Ii.
calculated.. Now we consider another method of calculating theri
correlation coefficient. Even thougli this, method may not measure the J~
~egree ofcoefficient as good as in the "ther two methods it gives in a weryJ
simple Way the coefficient of correlation which will enable us to,note~'
whether the variables
dependent or not.
'
t~

are

~\~

This method requires only a direction of change (+ ve to -ve or~!t~

....vc to +ve) in the successive values of the variables x and in the variablesy. )~
The coefficient of correlation is given by the formula

v<Te -- ~- V-~(2C-N)
N

where Te is the coefficient of concurrent deviiltions, C is the number of

concurrent deviations and N is the number of pairs of deviations
compared. The sign of re is-determined as fol1ow~ If 2C - N is negative
then' -' sign is taken both inside and outside the square root. In this case
Te is negative.1f2C - N is positive then "+' sign is taken both inside and
ou,tside the square root)rhe value of'Te 'will always lie between -1 and
+, l.i.e., -1 :s rc :s 1.

I.!

f;~

~h

Calculate coefficient of correlation by the

. concurrent deviation from the following data.

. '. :. ~ /

'''x

(y .

It is the simplest formula for calculating 'T'.

(2)

It is easily determined by this method whether the variables are

dependent or not.

Demerits
( 1)

This method does not differentiate small and bigchanges in the values
of variables. Both srnaU and big changes have the same weight when
they are considered for the change in the direction o(variables.

(2)

The value of '1" obtained by this method is only a rough indicator

for the presence or absence of correlation.

85

Zo

23

,62
19,

48
21

84

95 103 100

25

25

28 ,,27

.
85
26

". , ,

115
30

::'S.olution :
"Q1.ange in
direction of
variable X
Dx

x
84
85

Change in,
direction .0/
variable Y
Dy

J)xDy

20

62
48
84
95

+,
,+
+

103

23
19

21

25
25

, ~ti';'cl1arige

85

26.
30'

-+

I',

No. of concurrent deviation ==

, , Disagreement =
r
c

:to

l~

--.- " -- (2x7-9)

,,'

V7}

. ,"
. +..,. ", .+5
':'== + ".f.tlf.33'
I),

.".

= 0.74

Note: 'UtheJ'~"isn9change in the direction for a pair of values o(x or

'~seriesthen'itwiD not be count.ed for ~ncurreritdeviation.

Example 2: . fi~~tbe<i9~~cient of~rrelatioDby concurrent deviation
'm~thodof . th~ fQUowing data:

vi

x ' ' '60,

Y

23

51},'

72 '

51 55

54,

65

36

10

38

44

33

33

'I~i

I.

.!i.

1' , ,

~\Ill

{i1iC-:::-N)
" N

= . '... , ' 9

~fc
l~~

+
+
+
+

~,

100
115

+
+

.+ '

-#} .

Note: 'N' is not the number of pairs of observation but only the
number of pairs of deviations. i.e., N = n - 1 where ',,' is the number of
Pitirs of observations.
~rits

(~)

84

metho~QC.

~.

,.. 2l1'
, ..

Correlation

210

:':' ..

Solution:

Changein

direction of

Chimgeln
direction of
variable Y

varillbleX
Dx
60
59

.....
__ ,
,,'."":.

+'

72

.+
-

51
55
54
65

l-i

23
36
10

;':0
-',

~'

~'=7N'

,+
,
'

.,

The Iimlts for the population correlation coefficient are given by

p ,= r:t P.E.

, where 'p' denotes the corielat1oneoefficient in thepopu1ation~The

following facts fr!>m Probable ~rroi' are significant.

3~

0
6

= ... h

V=: (2C-N)
N

,"';:i;
(2 xO.- 6) ,
,
'6

/y
-t) - -,
_

.-

DxDy

whereS.E. is the standard error of correlation coefficient and is given by

44
1
33
+
concurrent deviation Ie =
Disagreements '=
r

.~

-6
6

'

. (i) If the valu~or ,is less thaD the probable error, then there is no
evidence of correlation.
.'

,(ii) If the ~:Of"i~e ~a~ ~ix time~ the probable error, then
the presence of co~elatlOn coeffiCIent IS certain. .
(iii)' Since 'T' lies' between.:"; 1 an~ + 1 (-1 :$ .,. :s 1) the probable
error is never negative.
'
.. Note: The formula for P.E. is v~ued'only if (1) the ~pIechosen
dr is a simple random sample and (2) the popolation. is'noma!.
prob~le' error assuming the correlation
coefficient of 0.9 from a sample of 25, pairs of items..

:umple 1: Compute the

,'.",
= '""
.;..Vf.='
,,', -1

f'r$~luUoD:
. .. ": . ,
'

'0.9; n'" 25

., P.E.

PROBABLE ERROR
In a Dumber of situations webavec~cfulated. the correl
coefficient between two variables x and Y,for. example between
of husband and,t,hea~e of wife, qte heighro,!fater~ctJ1eigh~:~f~'!l~~t
calculate the correlation coe~:Ient we hafe t~kenas,a~R~~:~f;'~2:mJ
of values fro~ a lar~e populatton" Th~.~lT~!~!~gq~{fj .....'fljfi.d..
fromtht s~Wple maYQQt beth~ s!ll11~ a~tbe,,~~m:.ija;~~Q",
population. It is possi~le .todeterminet~e\:,~ts' b~
coefficient ofcorrilanon oftbe p~put~('
.,f sample correlation coefficierlt'Prci~~l
the con:elation.~~~~&(j" , \ >

,0'

I' ...

:'.~~

= 0.6745 x 1 -

(0.9)

=0.6745 x 0.D38 = 0.0256.

:~"ple~: 'If r}'= 0.8 and n ~ 64 find 'out the probable error ofthe

,L~::;,:;h\::,.-~fficient of correlation and determine the limits for the

}t~(i~';lif)~~=::::'
\,'....\

P;~,

= 0.6745 X -""':!:=~
,;,;:"O:~745)(:04S: ...0.0304
. "" .' ' .. ,
!<>~ftiqtf1:~are P.E;
~:''':.'- ".~~.;"::.':.' .~'I:.... :;:~/,::::>:;,

..:: .... ", . .

"