B.

DEVI PRAVALLIKA
8701,MTECH-CIVIL

REPORT ON COEFFICIENT OF CORRELATION

(COMPUTATION MATHS)
The function between two variables are related to one another
and the pattern of the data points on the scatter plot can
illustrate various patterns and relationships, including

data correlation
positive or direct relationships between variables
negative or inverse relationships between variables
non-linear patterns
As we confined our attention to the analysis of observations on a
single variable. There are many phenomenon where one variable
are related to the changes in the other variable.
For example the yield of a crop varies with the amount of the
rainfall, the price of a commoditiy increases with the
reduction in its supply. From the above examples we have
notified that change in one variable is associated with the
change in other variable this relation which exists is known
as CORRELATION. Such data connecting two variables is
known as Bivariate population
DEFINITION OF CORRELATION
The change in one variable depends on the change in
another variable is known as correlation. it is denoted by r
and it is mentioned as -1 r 1 the value should lie
between these limiting position. in case of solving the

problems the straight line fitting is used y= a + bx and the

normal equations are derived using
this straight line
equation:
y = na + b x

xy= ax + bx^2
correlation than a study using social science data. The quantity r, called the linear
correlation coefficient, measures the strength and the direction of a linear
relationship between two variables. The linear correlation coefficient is sometimes
referred to as the Pearson product moment correlation coefficient in honor of its
developer Karl Pearson. The value of r is such that -1 < r < +1. The + and signs
are used for positive linear correlations and negative linear correlations,
respectively.

Positive correlation: If x and y have a strong positive linear correlation, r is

close to +1. An r value of exactly +1 indicates a perfect positive fit. Positive
values indicate a relationship betweenxandyvariables such that as values
forxincreasesthevalueyincreases
Negative correlation: If x and y have a strong negative linear correlation, r is
close to -1. An r value of exactly -1 indicates a perfect negative fit. Negative
values indicatearelationshipbetweenxandysuchthatasvaluesforxincrease,
valuesydecrease.
No correlation: If there is no linear correlation or a weak linear correlation, r is
close to 0. A value near zero means that there is a random, nonlinear
relationshipbetweenthetwovariables. Note that r is a dimension less quantity;
that is, it does not depend on the units that are being employed.

A perfect correlation of 1 occurs only when the data points all lie exactly on a
straight line. If r = +1, the slope of this line is positive. If r = -1, the slope of
this line is negative. A correlation greater than 0.8 is generally described as strong,
whereas a correlation less than 0.5 is generally described as weak. These value can
vary based upon the "type" of data that is being examined.
If an increase or decrease in the values of one variable
corresponds to an increase or decrease in the other ,the
correlation is said to be positive. If the increase or decrease
in one corresponds to the decrease or increase in the other
the correlation is said to be negative. If there is no
relationship indicated between the variables they are said to
be independent or uncorrelated. To obtain a measure of
relationship
between two variables we plot their
corresponding values on the graph taking one of variables on
the x axis and the other along y axis. Let the origin is shifted
to x and y where x and y are the new corrdinates. Now the
points x and y are so distributed along over the four
quardants of xy plane that the product is positive in the first
and third quardants but negative in second and fourth
quardants. The algebric sum of the products can be taken as
describing the trend of dots in all the quardants
If xy is positive , the trend of dots is through the first and
the third quardants
If xy is negative , the trend of dots is through the second
and fourth quardants
If the xy is zero, the points indicate no trend that is points
are evenly distributed through the four quardants
Method of Calculation:
a) Direct method substituting the value of x and y in the
above formule
we get r=XY/(X^2Y^2) .

Another form of the formula (1) which is quite handy for

calculation is
r= nxy-xy / { (nx^2-(x)^2 } x {ny^2(y)^2}}
This formula is used when the means are integers
b) Step deviation method:
the direct method becomes very large ,lengthy and tedious if
the means of two series are not integers in such cases ,use
is made of assumed means if dx and dy are step deviations
from the assumed means
r= n dxdy- dx dy/{ (n dx^2-(dx)^2} x {ndy^2(dy)^2)}
where

dx=(x-a)/h
dy=(y-b)/k
Coefficient of correlation for grouped data:
where x and y series are both given as
frequency distributiors ,these can be represented by a twoway table known as the Correlation table . it is double entry
table with one series along the horizontal and the other
along the vertical as shown .The coefficient of correlation for
such a bivariate frequency distribution is calculated by the
formula
r= n(fdx dy)-(fdx)(fdy)/ ({nfdx^2-(fdx)^2} x
{nfdy^2(fdy)^2})
Where, dx=deviation of the central values from the assumed
means of x series .
dy=deviation of the central values from the assumed
means of y-series .
f= frequency corresponding to the pair (x,y)
n= total number of frequency ( f )
Uses of correlation:

measures and describes the strength and direction of the

relationship
Bivariate techniques requires two variable scores from the
same individuals (dependent and independent variables).
Multivariate when more than two independent variables (e.g
effect of advertising and prices on sales). Variables must be
ratio or interval scale
Coefficient of correlation
It also called as Pearson product moment correlation
coefficient. The algebraic method of measuring the
correlation is called the coefficient of correlation.
There are mainly three coefficients of correlation
Karl Pearsons Coefficient of correlation
Pearsons rank correlation coefficient
Concurrent correlation
Coefficient of correlation, r, called the linear correlation
coefficient, measures the strength and the direction of a
linear
relationship
between
twovariables

A measure of the strength and direction of a linear

relationship between two variables

Simple Correlation
If there are only two variable under study, the correlation is said
to be simple.
Example: The correlation between price and demand is simple.
Multiple Correlations
When one variable is related to a number of other variables, the
correlation is not simple. It is multiple if there is one variable on
one side and a set of variables on the other side.

Example: Relationship between yield with both rainfall and

fertilizer together is multiple correlations
Partial Correlation
The correlation is partial if we study the relationship between two
variables keeping all other variables constant. Example: The
Relationship between yield and rainfall at a constant temperature
is partial correlation.
Properties of the Coefficient of correlation
Coefficient of correlation has a well defined formula
Coefficient of correlation is a number and is independent of
the unit of measurement
Coefficient of correlation lies between 1 and 1
Coefficient of correlation between x and y will be same as
that between y and x.