DEPARTMENT OF TECHNICAL

EDUCATION :: ANDHRAPRADESH
Name : B.VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial &computer practice
Institute : GPW / Guntur
Year/ Sem : II year Sem 4
Subject : Quantitative techniques
Sub-code : CCP-403
Topic : Correlation analysis
Duration : 50 Minutes
Sub- Topic : Karl Pearson’s Correlation
problems-II
Teaching Aids : PPT ANIMATION
CCP403.7 1
Objectives

On completion of this period , you would be able to :

 Calculate Karl Pearson’s Coefficient of Correlation
 Direct Method

CCP403.7 2
Recap

 In the last class, YOU learnt Deviation Method

to calculate Karl Pearson’s Correlation
Co-efficient

r= ∑xy
________________
____________
√ ∑x² x ∑y²

CCP403.7 3
Recap - Degrees of Correlation

 Co-efficient of Correlation is represented by “ r “

 Value of “ r “ lies between + 1

 If value of “ r “ = + 1, it is Perfect Positive
Correlation between the variables

 If value of “ r “ = - 1, it is Perfect Negative

Correlation between the variables

CCP403.7 4
Recap – Degrees of Correlation Contd

 If value of “ r “ > 0.75 to 0.9, it is fairly High

Degree of Correlation between the variables
 If value of “ r “ < 0.5 to 0.25, it is Low Degree
of Correlation between the variables
 If value of “ r “ = 0, there is NO Correlation
between the variables

CCP403.7 5
Direct Method
Formula:

 r = N∑XY – (∑X) (∑Y)

√N ∑X2 - (∑X)2 √ N ∑Y2 – (∑Y)2

 When this formula is used, Karl Pearson’s COC

can be calculated WITHOUT taking deviations from
actual or assumed Arithmetic Mean

CCP403.7 6
Direct Method

Example 1:-
1. Calculate Karl Pearson’s Correlation Co-efficient
from the following data:

X 9 8 7 6 5 4 3 2 1

Y 15 16 14 13 11 12 10 8 9

CCP403.7 7
Solution to Ex.1
Calculation of Karl Pearson’s Correlation Co-efficient
(Direct Method)
X X2 Y Y2 XY
9 81 15 225 135
8 64 16 256 128
7 49 14 196 98
6 36 13 169 78
5 25 11 121 55
4 16 12 144 48
3 9 10 100 30
2 4 8 64 16
1 1 9 81 9
∑X=45 ∑X2=285 ∑Y=108 ∑Y2=1,356 ∑XY=597

CCP403.7 8
Solution contd – Direct method
r= N∑XY – (∑X) (∑Y)

√ N ∑X2 - (∑X)2 √ N ∑Y2 – (∑Y)2

N = 9, ∑XY = 597, ∑X = 45, ∑Y = 108, ∑X2 = 285, ∑Y2 = 1,356

r= 9 X 597 – 45 X 108

√9 X 285 – (45)2 √ 9 X 1,356 – (108)2

r= 5,373 – 4,860

√2,565 – 2,025 √12,204 – 11,664

r= 513
= 513 = +0.95
√540 X 540 540

Therefore, Co-efficient of Correlation

CCP403.7 = + 0.95 9
Solution contd

Interpretation:

 Since the value of “ r “ = + 0.429, there is

Low degree of Correlation between the marks of
students in the two subjects of SH (x) and CP(y)

CCP403.7 10
Summary

 Karl Pearson’s Co-efficient of Correlation by

DIRECT METHOD
Formula:-
N ∑ xy - (∑ x) (∑ y)
___________________________________
r= ______________ ______________
√ N∑ x²- (∑ x)² √ N∑y²-(∑y²)

 Better follow deviation method to avoid lengthy

calculations

CCP403.7 11
Quiz

1) COC can be greater than 1.

a) True

b) False

c) Sometimes true

d) Cannot say
CCP403.7 12

12
Quiz

2) If the value of r = 0, it means –

a) High degree of COC between variables

b) Low degree of COC between variables

c) No Correlation between variables

d) None of the above

CCP403.7 13
 Frequently Asked Questions

1. A group of 8 students got the following marks in a

test in Statistics and Accountancy.

Roll No 11 12 13 14 15 16 17 18
Statistics 50 60 65 70 75 40 70 80
Accountancy 80 71 60 77 90 82 70 50

Ans: -0.416

C-05,CCP-403 April 2007

CCP403.7 14
Assignment

1) Find out the Correlation Co-efficient between the

Heights and Weights given below:

Height 57 59 62 63 64 65 55 58 57
(inches)
Weight 11 11 12 12 130 12 111 116 11
(pounds) 3 7 6 6 9 2

Ans: +0.98

CCP403.7 15
Assignment

2) Find out the Correlation Co-efficient between the

Heights and Weights given below:
Advertis 39 65 62 90 82 75 25 98 36 78
-ement
Cost
(000 Rs)
Sales 47 53 58 86 62 68 60 91 51 84
(in lakhs
Rs)

Ans: +0.7804
CCP403.7 16
Assignment

3) Find out the Correlation Co-efficient between the

Heights and Weights given below:

Marks in 77 54 27 52 14 35 90 25 56 60
Acc
Marks in 35 58 60 40 50 40 35 56 34 42
Eng

Ans: +0.119

CCP403.7 17
Assignment
4) Find out the Correlation Co-efficient between the
Heights and Weights given below:

Age (Y) 30 32 35 40 48 50 52 55 57 61
Sick Days 1 0 2 5 2 4 6 5 7 8
(Y)

Ans: +0.87

CCP403.7 18
Assignment

5) For more problems on Correlation Co-efficient in

Karl Pearson’s method, refer to:
a) “Statistics – Problems and Solutions” by
V.K.Kapoor
b) “Fundamentals of Statistics” by S.C.Gupta
c) “Statistical Methods” by S.P.Gupta
d) Any other text book suggested by your teacher
e) Previous years’ exam question papers of SBTET

CCP403.7 19