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QUANTITAIVE METHODS
WEEK 7
Dr. Zahra Sadeghinejad
Correlation
Correlation: is a statistical technique used to determine the degree to
which two variables are related
Scatter diagram
• Rectangular coordinate
• Two quantitative variables
• One variable is called independent (X) and the second is called
dependent (Y)
Y
• Points are not joined * *
*
• No frequency table X
Example
Weight and systolic blood pressure
Wt. 67 69 85 83 74 81 97 92 114 85
(kg)
SBP 120 125 140 160 130 180 150 140 200 130
(mmHg)
Wt. 67 69 85 83 74 81 97 92 114 85
SBP(mmHg) (kg)
SBP 120 125 140 160 130 180 150 140 200 130
(mmHg)
220
200
180
160
140
120
100
80 wt (kg)
60 70 80 90 100 110 120
200
180
160
140
120
100
80
Wt (kg)
60 70 80 90 100 110 120
The pattern of data is indicative of the type of relationship between your two variables:
positive relationship
negative relationship
no relationship
Degree of Correlation
r = +.80
Weight
Height
Degree of Correlation
r = + 0.4
Shoe
Size
Weight
Degree of Correlation
r = -1.0
TV
watching
per
week
Exam score
Degree of Correlation
r = -.80
TV
watching
per
week
Exam score
Degree of Correlation
Shoe
r = - 0.2
Size
Weight
Negative Relationship
Reliability
Age of Car
Degree of Correlation
r = 0.0
IQ
Height
No Relation
Degree Of Correlation (R)
r = +.80 r = +.60
r = +.20
r = +.40
SUMMARY
If the sign is +ve this means the relation is direct (an increase in one
variable is associated with an increase in the
other variable and a decrease in one variable is associated with a
decrease in the other variable).
While if the sign is -ve this means an inverse or indirect relationship (which
means an increase in one variable is associated with a decrease in the
other).
Correlation Coefficient
The value of r ranges between ( -1) and ( +1)
The value of r denotes the strength of the association as illustrated
by the following diagram.
If r = l = perfect correlation.
Correlation Coefficient
How to compute the simple correlation coefficient (r)
xy x y
r n
x
2
( x) 2
. y
2
( y) 2
n n
Example
A sample of 6 children was selected, data about their age in years and weight
in kilograms was recorded as shown in the following table . It is required to
find the correlation between age and weight.
xy x y
r n
( x) 2 ( y) 2
x
2 . y
2
n n
Age Weight
Serial
(years) (Kg) xy X2 Y2
n.
(x) (y)
1 7 12 84 49 144
2 6 8 48 36 64
3 8 12 96 64 144
4 5 10 50 25 100
5 6 11 66 36 121
6 9 13 117 81 169
Total ∑x= ∑y= ∑xy= ∑x2= ∑y2=
41 66 461 291 742
41 66
461
r 6
(41) 2 (66) 2
291 .742
6 6
r = 0.759
strong direct correlation
Example
10 2
8 3
2 9
1 7
5 6
6 5
Anxiety Test X2 Y2 XY
(X) score (Y)
10 2 100 4 20
8 3 64 9 24
2 9 4 81 18
1 7 1 49 7
5 6 25 36 30
6 5 36 25 30
∑X = 32 ∑Y = 32 ∑X2 = 230 ∑Y2 = 204 ∑XY=129
Anxiety Test X2 Y2 XY
(X) score (Y)
10 2 100 4 20
8 3 64 9 24
2 9 4 81 18
1 7 1 49 7
5 6 25 36 30
6 5 36 25 30
∑X = 32 ∑Y = 32 ∑X2 = 230 ∑Y2 = 204 ∑XY=129
Calculating Correlation Coefficient
r = - 0.94
Indirect strong correlation
Exercise
Example: Ice Cream Sales
• The local ice cream shop keeps track of how much ice cream they sell versus the
temperature on that day, here are their figures for the last 12 days:
Ice Cream Sales vs Temperature
Temperature °C Ice Cream Sales
14.2° $215
16.4° $325
11.9° $185
15.2° $332
18.5° $406
22.1° $522
19.4° $412
25.1° $614
23.4° $544
18.1° $421
22.6° $445
17.2° $408
And here is the same data as a scatter plot:
• We can easily see that warmer weather and higher sales go together. The
relationship is good but not perfect.
• In fact the correlation is 0.9575