PEARSON
CORRELATION
COEFFICIENT
(Pearson r)
What is Pearson’s r?
Pearson correlation coefficient or Pearson’s correlation coefficient
or Pearson’s r is defined in statistics as the measurement of the
strength of the relationship between two variables and their
association with each other.
The correlation coefficient takes on values ranging between -1 and
+1
TYPES OF CORRELATION
1. Positive Correlation – Means as one variable will increases
and the other one also increases.
Ex. Your school performance will increases and also your
grades increase.
2. Negative Correlation - Means as one variable will increases
and the other one decreases.
Ex. Waiting time and your satisfaction when you are going
to coffee shop . As you waiting time becomes longer
then your satisfaction to the coffee shop will become
lower.
Pearson correlation coefficient formula:
Where:
N = the number of pairs of scores
Σxy = the sum of the products of paired scores
Σx = the sum of x scores
Σy = the sum of y scores
Σx2 = the sum of squared x scores
Σy2 = the sum of squared y scores
Steps:
How to solve? 1. To get the value of XY,
1. FILL IN THE TABLE multiply the value of x
and y.
Service Customer
Quality Satisfaction XY
(x) (Y) 2. To get the value of
4 5 20 16 25
4 4 16 16 16
3. To get the value of
5 5 25 25 25
5 5 25 25 25
4. To get the values of . Add
5 5 25 25 25 all the values of each
column.
2. SUBSTITUTE THE VALUES ON THE GIVEN FORMULA
3. SOLVE FOR THE VALUE OF r
Steps to get value of r:
1. Multiply
2. Subtract
3. Multiply
4. Get the square root
5. Divide
The r-value
4. DETERMINE THE STRENGTH OF THE r-VALUE
r-value strength of relationship
+.70 or higher Very strong positive relationship
+.40 to +.69 Strong positive relationship
r = 0.61
+.30 to +.39 Moderate positive relationship
+.20 to +.29 Weak positive relationship Means that the Service
+.01 to +.19 No or negligible relationship Quality and Customer
Satisfaction based on the
0 No relationship (zero correlation)
example have a strong
-.01 to -.19 No or negligible relationship positive relationship. It
-.20 to -.29 Weak negative relationship means they are have a
-.30 to -.39 Moderate negative relationship strong correlation to each
-.40 to -.69 Strong negative relationship other or they have 61%
correlation between the
-.70 or higher Very strong negative relationship
two of them.
SCATTERPLOT
SCATTERPLOT
- Scatter plots (also called
scatter graphs) are similar to
line graphs. A line graph uses a
line on an X-Y axis to plot a
continuous function, while a
scatter plot uses dots to
represent individual pieces of
data. In statistics, these plots
are useful to see if two
variables are related to each
other.
DIRECTION
One important component to a scatterplot is the direction of the relationship
between the two variables.
Positive Correlation- If the x-coordinates both increase.
Negative Correlation- If the x-coordinates have one increasing and one
decreasing.
No Correlation- If there seems no pattern and the points look scattered.
FORM
Another important component to a scatterplot is the form of the relationship
between the two variables.
Linear
This means that the points on the scatterplot closely resemble a straight line.
A relationship is linear if one variable increases by approximately the same rate as
the other variables changes by one unit.
Non-Linear
This illustrates a relationship that has the form of a curve, rather than a straight
line. This is due to the fact that one variable does not increase at a constant rate
and may even start decreasing after a certain point.
STRENGTH
Another important component to a scatterplot is the strength of the relationship
between the two variables.
OUTLIERS
An outlier for a scatter plot is the point or points that are farthest from the
regression line. There is at least one outlier on a scatter plot in most cases, and
there is usually only one outlier.
Outlier on the scatter- plot might raise a red flag
Outlier can provide a hint of some deficiency in the testing or scoring procedures.