DEPARTMENT OF TECHNICAL

EDUCATION ANDHRAPRADESH
Name : B.VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial &computer
practice
Institute : GPW / Guntur
Year/ Sem : II year Sem 4
Subject : Quantitative techniques-II
Sub-code : CCP-403
Topic : Correlation analysis
Duration : 50 Minutes
CCP403.8 1

Sub- Topic : Karl Pearson’s Correlation

Objectives

On the Completion of this period, you would

be able to:

 Calculate Karl Pearson’s Coefficient

CCP403.8 2
Recap

 In the earlier classes, YOU learnt

calculation of Correlation Co-efficient in

(a) Deviation taken from Actual Mean

(b) Direct Method

 Now, let us learn SHORT-CUT METHOD

3

CCP403.8 3
Karl Pearson’s Co-efficient of Correlation
- Short-cut Method

 In this method, deviations are taken from

ASSUMED MEAN
 Advantage: It eliminates cumbersome and too
many calculations and saves time

Formula:
N  dxd y   dx   d y
r
N  d x  ( d x )  N  d y  ( d y )
2 2 2 2

CCP403.8 4
Formula – Explanation

_
dx = (X – X) deviation in X series from
its ASSUMED Mean

dy = (Y – Y) deviation in Y series from

its ASSUMED Mean

∑dxdy = Sum of product of deviations of x and y

series from their ASSUMED Mean
5

CCP403.8 5
N = Number of Observations
Formula – Explanation contd
∑dx2 = Sum of squares of deviations of X series from
its ASSUMED Mean

∑dy2 = Sum of squares of deviations of Y series

from its ASSUMED Mean

∑dx = Sum of deviations of X series from its

ASSUMED Mean

∑dy = Sum of deviations of Y series from its

6
ASSUMED MeanCCP403.8 6
Steps of Short Cut Method
 Take deviations of X series from its ASSUMED
Mean, i.e., dx and get its total, i.e., ∑ dx

 Take deviations of Y series from its ASSUMED

Mean, i.e., dy and get its total, i.e., ∑ dy

 Square dx and get total, i.e., ∑dx2

 Square dy and get total, i.e., ∑dy2

7
 Multiply dx and dy and getCCP403.8
total ∑dxdy 7
Example 1

Find Karl Pearson’s COC between values of

X and Y given below by shortcut method:

X 78 89 96 69 59 79 68 61

Y 125 137 156 112 107 136 123 108

CCP403.8 8
Solution to Ex.1
Calculation of Karl Pearson’s COC Short Cut Method
Assumed Assumed
Mean = 69 Mean = 112
X dx = (X- dx² Y dy = (y- dy² dxdy
69) 112)
78 +9 81 125 +13 169 +117
89 +20 400 137 +25 625 +500
96 +27 729 156 +44 1936 +1188
69 0 0 112 0 0 0
59 -10 100 107 -5 25 +50
79 +10 100 136 +24 576 +240
68 -1 1 123 +11 121 -11
61 -8 64 108 -4 16 +32
N =8 ∑dx=47 ∑dx²= N=8 ∑dY=108 ∑dY²= ∑dXdY
1475 3468 =2116
CCP403.8 9
Solution to Ex.1 contd

N ∑dxdy – ∑dx X ∑dy

r=
√N ∑dx2 - (∑dx)2 √ N ∑dy2 – (∑dy)2

8 x 2116 – 47 X 108
r=
√8 x 1475 - (47)2 √ 8 x 3468 – (108)2

16928 – 5076
r=
√11800 – 2209 √ 27744 – 11664
11852 11852
r= =
97.9387 X 126.8069 12419.3029
10
Ans = +0.955
CCP403.8 10
Solution contd

Interpretation:

Since the value of “ r “ = + 0.955, there is

HIGH degree of Correlation between the
Two variables of X and Y

11

CCP403.8 11
Important Points to Remember

 Any Value of the Data can be taken as

Assumed Mean
 To Avoid Cumbersome Calculations, it is
better to follow this Method

CCP403.8 12
Summary

Karl Pearson’s Co-efficient of Correlation in

SHORT-CUT METHOD

Formula:-

N  dxd y   dx   d y
r
N  d x 2  ( d x ) 2  N  d y 2  ( d y ) 2

13

CCP403.8 13
Quiz

1) In short-cut method of calculating COC,

deviations are taken from –

a) Modal Value

b) Standard Deviation

c) Actual Mean of each series

d) Assumed Mean of each series 14

CCP403.8 14
Quiz

2) If the value of r > 0.75 to 0.9, it means –

a) High degree of COC between variables

b) Low degree of COC between variables

c) No Correlation between variables

d) None of the above

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CCP403.8 15
Frequently Asked Questions

1. Calculate Karl Pearson’s COC for the data

below:

X 25 28 35 32 31 36 29 38 34 32
Y 43 46 49 41 46 32 31 30 33 39

Ans: -0.411

C-05, CCP 403, April 2007

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CCP403.8 16
Assignment
1) Calculate Karl Pearson’s COC for the data
below:
Size group 15 - 16 – 17 – 18 – 19 – 20 - 21
16 17 18 19 20
No of 200 270 340 360 400 300
items
No of 150 162 170 180 180 114
defective
items

Hint : Mid point of size = x, % of defective items = y

17
Ans: r = - 0.949
CCP403.8 17
Assignment
2) Given : Total of deviations of X and Y series = 3044
Number of pairs of observations = 10
Total of deviations of X series = -170
Total of deviations of Y series = -20
Total of squares of deviations of X series = 8288
Total of squares of deviations of Y series = 2264
Find out Karl Pearson’s COC when ASSUMED
Means of X series = 82 and Y series = 68
Ans: r = + 0.7804
18

CCP403.8 18
Assignment
3) Given:
No of pairs of observations of X and Y series = 8
X series Arithmetic Average = 74.5
X series Assumed Average = 69
X series Standard Deviation = 13.07
Y series Arithmetic Average = 125.5
Y series Assued Average = 112
Y series Standard Deviation = 15.85
Ans: r = +0.955

19

CCP403.8 19
Assignment
4) For more problems on Correlation Co-efficient
in Karl Pearson’s method, refer to:
a) “Statistics – Problems and Solutions” by
V.K.Kapoor
b) “Fundamentals of Statistics” by S.C.Gupta
c) “Statistical Methods” by S.P.Gupta
d) Any other text book suggested by your
teacher
e) Previous Year’s exam Question Paper 20

CCP403.8 20