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CORRELATION ANALYSIS
Necessity
Introduction
Significance
Types of correlation
Multiple correlation
Limitations
CIVIL ENGINEERING NECESSITY
Many hydrologic variables are related to each
other through cause and effect
Changes in the values of one or more variables
cause changes in some other variable
When simultaneous observations on such
hydrological variables are available, one may be
interested in finding out how strong is such
association.
Linear association between hydrologic variables
is expressed by the correlation
If one variable drives the other, they may be
correlated, as rainfall and runoff
The variables may also be correlated if they
share the same cause, such as river discharge,
concentration or transport rates of sediment
Correlation Analysis attempts to determine the
degree of relationship between variables- Ya-
Kun-Chou.
Correlation is an analysis of the covariation
between two or more variables.- A.M.Tuttle.
INTRODUCTION
Correlation: A LINEAR association between two
random variables
Correlation analysis show us how to determine
both the nature and strength of relationship
between two variables
When variables are dependent on time
correlation is applied
Correlation lies between +1 to -1
A zero correlation indicates that there is no
relationship between the variables
A correlation of 1 indicates a perfect negative
correlation
A correlation of +1 indicates a perfect positive
correlation
SIGNIFICANCE
Positive Negative
If the two variables If the two variables
tend to move together tend to move together
in the same direction, in the opposite
then it is called positive direction, then it is
or direct correlation called negative or
Price and supply, height inverse correlation
and weight, yield and Price and demand,
rainfall yield of crop and price
Simple Multiple
One dependent
One independent and
and more than
one dependent
one independent
variable
variables
quantity of money
price, demand and
and price level supply
Partial
One dependent variable and
more than one independent
variable but only one
independent variable is
considered and other
independent variables are
considered constant
price and demand
eliminating supply side
Linear Non linear
When plotted on a When plotted on a
graph it tends to be graph it is not a
a perfect line straight line
METHODS OF STUDYING CORRELATION
Scatter Diagram Method
Karl Pearson Coefficient Correlation of Method
r lies between +1 to -1
-1 < r < +1