MEASURES OF CORRELATION FORMULAES AND STEPS TO SOLVE.

FORMULAES: Measures of Correlation

1. Karl Pearsons Coefficient of Correlation a) Actual Mean Method/Direct Method

r=xy

r=x .y
2

b) Standard Deviation Method

r = xy N X Y WHERE X=

X
N

WHERE Y=

Y
N

c) Assumed Mean Method/Indirect Method

R=DXDY

dx .dy
N

dx -(dx )
2 2
N

dy2 (dy)2
N

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MEASURES OF CORRELATION FORMULAES AND STEPS TO SOLVE.

2. Spearmans Rank Correlation/Coefficient of Correlation by Rank Difference Method a)If ranks are repeated b)If ranks are not given rk=1-6d2 N3-N

c)If ranks are repeated 3.

rk=6{d2+

( M3-M) + N3 - N

( M3-M) + .

Karl Pearsons Coefficient of Correlation Actual Mean Method

Arithmetic means of both X and Y series should be completed. Deviations of X series from should be ascertained expressed as x. Deviations i.e., x should be squared its total obtained and express as x . Deviations of Y series for y should be obtained and expressed as y. Deviations i.e., y should be squared its total obtained and express as y2 Deviations from X and i.e., x and y should be multiplied and expressed as xy finally xy should be obtained. At the end, the following formula will be applied as

Step Deviation Method

Step1: obtain the actual mean of y series .determine deviation from actual mean and express it as x.
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MEASURES OF CORRELATION FORMULAES AND STEPS TO SOLVE.

Step2: square up the deviation and find out EX2 STEP3: obtain the actual mean of y series . Determine deviation from actual mean and denote it as y. Step4: deviation should be squared up and Xy2 should be ascertained. Step5: deviation from x and y series should be multipled. And totalled up to get xy. step6: use fourmla x= y=

STEP7: apply fourmla to do correlation: r=xy /n x y

Assumed Mean Method

Steps 1. we should assume separate mean of X and Y deviations from the assumed mean and express it as dx and dy. dx and dy should also be calculated Step 2. deviations should be squared, their summation obtained expressed as dx2 and dy2. Step 3. deviations from X and Y series should be multiplied and their product should be expressed as dxdy. Its total should be obtained and denoted as dxdy. Step 4. finally apply the following formula to calculate correlation,:

Spearmans Rank Correlation Coefficient If Ranks are given:

We plot the ranks as maintained in the two series and name it as R 1 and R2. Difference between the two i.e., R1-R2 is obtained and expressed as D. D is squared and D2 is obtained.
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MEASURES OF CORRELATION FORMULAES AND STEPS TO SOLVE.

At the end we apply the following formula to calculate coefficient of correlation.

rk= 1 If Ranks are not given:

While calculating coefficient of correlation in case ranks are not given, we must first allot ranks to all the values of the series. Ranks may be allotted either on ascending or descending order. In case of ascending order the smallest value is allotted first rank and so the next value is the second rank and so on. In descending order the largest rank is according to the first rank and the second largest, second rank and so on. The smallest value is granted the largest rank. The order of allotting rank in both the series should be the same. Ranks allotted to X series are marked as R-1 and to that of Y series as R-2. Difference between R1-R2 is ascertained with their algebraic signs. The deviations are squared. We obtain the total of the numbers and D 2 and express them as N and D2 respectively. Finally, we apply the same formula that is,

rk= 1 If Ranks are repeated:

Average rank is assigned to the similar items. For example, while granting 8th rank we find that two items have the similar value. Both of them will be accorded average rank i.e., = = 8.5th rank. In case equal ranks are allotted to some of the entries an adjustment in the formula or correlation is made by adding (m3-m). Here, m stands for the number of times a rank is repeated.

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