Correlation-Regression

It deals with association between two or more variables Correlation analysis deals with covariation between two or more variables Types 1. Positive or negative Simple or multiple Linear or non-linear

Methods of Measuring correlation 1. Graphic Method 2. Diagramatic Method- Scatter Diagram 3. Algebraic method a. Karl Pearsons Coefficient of correlation b. Spearmans Rank Co-efficient Correlation c. Coefficient of Concurrent deviations d. Least Squares Method

Karl Pearsons Coefficient of Correlation dx dy ( Gamma) = ------------------------ dx2 dy2 dx dy = ------------------------N xy dx = x-xbar dy = y- ybar dx dy = sum of products of deviations from respective arithmetic means of both series

Karl Pearsons Coefficient of Correlation After calculating assumed or working mean Ax & Ay dx dy ( dx) *( dy) ( Gamma) = ------------------------------- [ N dx2 - ( dx)2 * [ Ndy2 - ( dy)2 ] dx dy = total of products of deviation from assumed means of x and y series dx = total of deviations of x series dy = total of deviations of y series dx2 = total of squared deviations of x series dy2 = total of squared deviations of y series N= No. of items ( no. of paired items

Karl Pearsons Coefficient of Correlation After calculating assumed or working mean Ax & Ay dx x dy dx dy - ---------------N ( Gamma) = ------------------------( dx)2 ( dy)2 [ dx2 - --------- ] x [ dy2 - ------------] N N

Assumptions of Karl Pearsons Coefficient of Correlation 1. Linear relationship exists between the variables Properties of Karl Pearsons Coefficient of Correlation 1.value lies between +1 & - 1 2.Zero means no correlation 3. ( Gamma) = bxy X byx Where bxy X byx are regression coefficicent Merit Convenient for accurate interpretation as it gives degree & direction of relationship between two variables

Limitations 1. Assumes linear relationship , even though it may not be 2. Method & process of calculation is difficult & time consuming 3. Affected by extreme values in distribution

Probable Error of Karl Pearsons Coefficient of Correlation 1- 2 Probable Error of ( Gamma) = 0.6745 -------N

Q7.Calculate coefficient of correlation for following data

65 X Y 68 66 68 65 69 66 68 65 71 67 68 70 63 67 64 68 62 70 66 68 67 69 71

Ans dx dy ( Gamma) = ------------------------ dx2 dy2 dx dy = ------------------N xy

1 X Y 65 68

2 63 66

3 67 68

4 64 65

5 68 69

6 62 66

7 70 68

8 66 65

9 68 71

10 67 67

11 69 68

12 71 70

Su mX 800 811

Xbar 66.67 67.58

dx=x-xbar

-1.67

-3.67

0.33

-2.67

1.33

-4.67

3.33

-0.67

1.33

0.33

2.33

4.33
84. 67 40. 33

dx2

2.78

13.44

0.11

7.11

1.78

21.78

11.11

0.44

1.78

0.11

5.44

18.78

dx.dy

-0.69

5.81

0.14

6.89

1.89

7.39

1.39

1.72

4.56

-0.19

0.97

10.47

dy=y-ybar

0.42

-1.58

0.42

-2.58

1.42

-1.58

0.42

-2.58

3.42

-0.58

0.42

2.42 38. 92

dy2

0.17

2.51

0.17

6.67

2.01

2.51

0.17

6.67

11.67

0.34

0.17

5.84

dx dy

sum dx2* sumdy2

3294. 9

dx2 dy2
coeff of correlation =

57.40

0.70

Q8. following information about age of husbands & wives. Find correlation coefficient
23 27 28 29 30 31 33 35 36 39 Husband Wife 18 22 23 24 25 26 28 29 30 32

( Gamma) =0.99

10

Sum X

Xbar

23

27

28

29

30

31

33

35

36

39

311

31.10

Y dx=xxbar

18

22

23

24

25

26

28

29

30

32

257

25.70

-8.10

-4.10

-3.10

-2.10

-1.10

-0.10

1.90

3.90

4.90

7.90 202. 9 178. 3

dx2

65.61

16.81

9.61

4.41

1.21

0.01

3.61

15.21

24.01

62.41

dx.dy dy=yybar

62.37

15.17

8.37

3.57

0.77

-0.03

4.37

12.87

21.07

49.77

-7.70

-3.70

-2.70

-1.70

-0.70

0.30

2.30

3.30

4.30

6.30 158. 1

dy2

59.29

13.69

7.29

2.89

0.49

0.09

5.29

10.89

18.49

39.69

dx dy

sum dx2* sumdy2

32078. 49

dx2 dy2
coeff of correlation =

179.10

1.00

Q9. ten competitors in a cooking competition are ranked by three judges in the following way .by using rank coorelation method find out which pair of judges have nearest approach Ans P&Q= -0.21 , Q &R=--0.3 P &R = +0.64

Q9. ten competitors in a cooking competition are ranked by three judges in the following way .by using rank coorelation method find out which pair of judges have nearest approach
P 1 2 3 4 5 6 7 1 6 5 10 3 2 4 Q 3 5 8 4 7 10 2 R 6 4 9 8 1 2 3

8
9

9
7

1
6

10
5

10

Rank coefficient of correlation 2 6 d (rho) = 1 - ------------------N3-N 2 d = total of squared difference N = number of items

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

Q
3 5 8 4 7 10 2 1 6 9

R
6 4 9 8 1 2 3 10 5 7

RpRq -2 1 -3 6 -4 -8 2 8 1 -1

dpq2
4 1 9 36 16 64 4 64 1 1

RqRr -3 1 -1 -4 6 8 -1 -9 1 2

dqr2
9 1 1 16 36 64 1 81 1 4

RpRr -5 2 -4 2 2 0 1 -1 2 1

dpr2
25 4 16 4 4 0 1 1 4 1

1000

200

214

60

6Sigma d2

1200

1284

360

N3-N

990

6Sigma d2/N3-N

1.21

1.297

0.3636

P=

-0.21

-0.297

0.636364

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