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Negative Relationship in Scatter Plot Analysis

This document discusses various methods of correlation analysis. It defines correlation analysis as examining the relationship between two or more variables. It identifies types of correlation as positive or negative, simple/partial/multiple, and linear/non-linear. Methods of correlation analysis include graphical scatter plots and statistical techniques like Karl Pearson's coefficient of correlation, rank correlation, and regression analysis. Examples are provided to demonstrate calculating correlation coefficients using different statistical methods for both raw data and grouped data.

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darshan
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13 views5 pages

Negative Relationship in Scatter Plot Analysis

This document discusses various methods of correlation analysis. It defines correlation analysis as examining the relationship between two or more variables. It identifies types of correlation as positive or negative, simple/partial/multiple, and linear/non-linear. Methods of correlation analysis include graphical scatter plots and statistical techniques like Karl Pearson's coefficient of correlation, rank correlation, and regression analysis. Examples are provided to demonstrate calculating correlation coefficients using different statistical methods for both raw data and grouped data.

Uploaded by

darshan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Correlation Analysis

Correlation analysis is an analysis of the relationship of two or


more variables.
Types of correlation:
1. Positive or Negative Correlation
2. Simple, partial and multiple correlation
3. Linear and non linear correlation
Methods of correlation Analysis :
1. Graphic method
a. Scatter Diagram method
b. Graphic plot
2. Statistical method
a. Karl Pearsons Coefficient of Correlation
b. Rank Method
c. Concurrent Deviation Method
d. Method of Least Squares
Problem 1:
Draw a correlation graph
Months Jan
Feb
Income 1000
1200
Expens 900
1200
es

from the
March
1400
1300

following data:
April
May
1800
1900
1600
1700

2500
2000
1500
1000
500
0

Income
Expenses

June
2000
1900

July
2200
2000

Inference : There exists a very close positive correlation between


income and expenses
Statistical Method
1. Karl Pearsons coefficient of Correlation:
a. Arithmetic Mean Method
r = xy/ x 2 . y 2

where x=X -

and y=Y- Y

Problem2 :
Compute coefficient of correlation for the following data through
Karl Pearsons coefficient method
X
Y

25
20

Find mean X

35
15

45
10

52
14

= X / N

20
23

33
18

40
22

30
30

580
420

600
550

= Y /N

x=X - X
y=Y- Y
Use formula above to calculate
Problem 3 : Assumed Mean method
Calculate Karl Pearsons coefficient of correlation
Income 230
560
490
360
270
480
Expens 200
440
350
250
240
300
es
d=x-A
r=

dxdy( dx . dy )/N
dx 2 ( dx ) 2/ N . dy 2( dy ) 2 /N

Karl Pearsons coefficient for Grouped data

r=

f dxdy(fdx . fdy)/ N
f dx 2( fdx ) 2/ N . f dy 2( fdy ) 2 /N

Problem 4:
Calculate coefficient of correlation for the following data
Weekly
Weekly Expenses
120140160180200Income 100-120
125150
150175
175200
200225
225250

140

160

180

200

220

2
1

1
5

Total

12
9

12

10

11
8

10

50

Rank Correlation Co-efficient:


When ranks are given
1. Find out the difference of the two ranks( i.e., D) for the two
variables
2. Take the squares of these differences ( i.e, D 2) and find D2
3. Substitute the values in the formula
rR = 1 - 6D2/ N3 N
Problem : 5
Calculate rank co-efficient of correlation for 12 students in 2
different subjects
Studen No.
ts
Subjec I

10

10 11 1
2
11 12 2

t
Subjec
t

II

12

11

Regression Analysis:
Regression is a statistical technique, through which estimation of
unknown variable from the known can be done.

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