UNIT IV

3. Partial And Multiple Correlation

Lesson Outline

ӹӹ The Concept Of Partial Correlation

ӹӹ The Concept Of Multiple Correlation

Learning Objectives

After reading this lesson you should be able to

ӹӹ Determine Partial Correlation Coefficient

ӹӹ Determine Multiple Correlation Coefficient

I. PARTIAL CORRELATION

Simple correlation is a measure of the relationship between a

dependent variable and another independent variable. For example, if
the performance of a sales person depends only on the training that he
has received, then the relationship between the training and the sales
performance is measured by the simple correlation coefficient r. However,
a dependent variable may depend on several variables. For example, the
yarn produced in a factory may depend on the efficiency of the machine,
the quality of cotton, the efficiency of workers, etc. It becomes necessary
to have a measure of relationship in such complex situations. Partial
correlation is used for this purpose. The technique of partial correlation
proves useful when one has to develop a model with 3 to 5 variables.

Suppose Y is a dependent variable, depending on n other variables

X1, X2, …, X n.. Partial correlation is a measure of the relationship between
Y and any one of the variables X1, X2,…,Xn, as if the other variables have
been eliminated from the situation.
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The partial correlation coefficient is defined in terms of simple correlation
coefficients as follows:

Let r12. 3 denote the correlation of X1 and X2 by eliminating the

effect of X3.

Let r12 be the simple correlation coefficient between X1 and X2.

Let r13 be the simple correlation coefficient between X1 and X3.

Let r23 be the simple correlation coefficient between X2 and X3.

Then we have

r12 − r13 r 23
r12.3 =
(1 − r 2 13) (1 − r 2 23)

Similarly,

r13 − r12 r 32
r13.2 =
(1 − r 2 12) (1 − r 2 32)

r 23 − r 21 r13
and r 32.1 =
(1 − r 2 21) (1 − r 2 13)

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Problem 1

Given that r12 = 0.6, r13 = 0.58, r23 = 0.70 determine the partial
correlation coefficient r12.3

Solution:

We have

0.6 − 0.58 x 0.70

=
(1 − (0.58)2 ) (1 − (0.70)2 )

0.6 − 0.406

=
(1 − 0.3364) (1 − 0.49)

0.194
=
0.6636 x 0.51

0.194

=
0.8146 x 0.7141

0.194
=
0.5817


= 0.3335

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Problem 2

If r12 = 0.75, r13 = 0.80, r23 = 0.70, find the partial correlation
coefficient r13.2

Solution:

We have

r13 − r12 r 32
r13.2 =
(1 − r 2 12) (1 − r 2 32)

0.8 − 0.75 X 0.70

=
(1 − (0.75) 2 ) (1 − (0.70) 2 )

0.8 − 0.525
=
(1 − 0.5625) (1 − 0.49)

0.275
=
(0.4375) (0.51)

0.275
=
0.6614 X 0.7141

0.275
=
0.4723
= 0.5823

II. MULTIPLE CORRELATION

When the value of a variable is influenced by another variable, the

relationship between them is a simple correlation. In a real life situation, a
variable may be influenced by many other variables. For example, the sales
achieved for a product may depend on the income of the consumers, the
price, the quality of the product, sales promotion techniques, the channels
of distribution, etc. In this case, we have to consider the joint influence
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of several independent variables on the dependent variable. Multiple
correlations arise in this context.

Suppose Y is a dependent variable, which is influenced by n other

variables X1, X2, …,Xn. The multiple correlation is a measure of the
relationship between Y and X1, X2,…, Xn considered together.

The multiple correlation coefficients are denoted by the letter R.

The dependent variable is denoted by X1. The independent variables are
denoted by X2, X3, X4,…, etc.

Meaning of notations:

R1.23 denotes the multiple correlation of the dependent variable

X1 with two independent variables X2 and X3 . It is a measure of the
relationship that X1 has with X2 and X3 .

R2.13 is the multiple correlation of the dependent variable X2 with

two independent variables X1 and X3.

R3.12 is the multiple correlation of the dependent variable X3 with

two independent variables X1 and X2.

R1.234 is the multiple correlation of the dependent variable X1 with

three independent variables X2 , X3 and X4.

Coefficient Of Multiple Linear Correlations

The coefficient of multiple linear correlation is given in terms of

the partial correlation coefficients as follows:

r 2 12 + r 2 13 - 2 r12 r13 r23

R1.23 =
1 - r 2 23

r 2 21 + r 2 23 - 2 r21 r23 r13

R 2.13 =
1 - r 2 13

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 r 2 31 + r 2 32 - 2 r31 r32 r12
R 3.12 =
1 - r 2 12

Properties Of The Coefficient Of Multiple Linear Correlations:

1. The coefficient of multiple linear correlations R is a non-

negative quantity. It varies between 0 and 1.

2. R1.23 = R1.32

R2.13 = R2.31

R3.12 = R3.21, etc.

3. R1.23 ≥ |r12|,

R1.32 ≥ |r13|, etc.

Problem 3

If the simple correlation coefficients have the values r12 = 0.6, r13 =
0.65, r23 = 0.8, find the multiple correlation coefficient R1.23

Solution:

We have

r 2 12 + r 2 13 - 2 r12 r13 r23

R1.23 =
1 - r 2 23

(0.6) 2 + (0.65) 2 - 2x0.6x0.65x0.8

=
1 - (0.8) 2

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 0.36+ 0.4225- 0.624
=
1 - 0.64

0.7825- 0.624
=
0.36

0.1585
=
0.36

= 0.4403

= 0.6636

Problem 4

Given that r21 = 0.7, r23 = 0.85 and r13 = 0.75, determine R2.13

Solution:

r 2 21 + r 2 23 - 2 r21 r23 r13

We have R 2.13 =
1 - r 2 13

(0.7) 2 + (0.85) 2 - 2 x0.7x0.85x0.75
=
1 - (0.75) 2

0.49+ 0.7225- 0.8925

=
1 - 0.5625

1.2125- 0.8925
=
0.4375

0.32
=
0.4375

= 0.7314
=0.8552
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QUESTIONS

1. Explain partial correlation.

2. Explain multiple correlations.
3. State the properties of the coefficient of multiple linear correlations.

***

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