DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : B. VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial & Computer Practice (CCP)
Institute : GPW/Guntur
Year/Sem : II Yr Sem 4 (C-05)
Subject : QUANTITATIVE TECHNIQUES-II
Sub-Code : CCP-403
Topic : CORRELATION ANALYSIS
Duration : 50 minutes
Sub Topic : PROBABLE ERROR Problems II
Teaching Aids : PPT ANIMATION
CCP403.11 1
Objectives:

On Completion of this period, you would

be able to:
 Calculate Probable Error

CCP403.11 2
 Recap

 In the last class, YOU learnt how to calculate

PROBABLE ERROR.
 Before we solve another problem on PE, Let us
RECAP what YOU learnt in the earlier classes

CCP403.11 3
Recap
Probable error

 Helps in interpreting COC value

 Determines reliability of COC
1 r 2
Formula : PE  0.6745
N

Where r = Coefficient of Correlation

N = No of pairs of observations

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Example 1

Find Karl Pearson’s Co-efficient of Correlation for the

following data and calculate the Probable Error:

X 100 102 104 107 105 112 103 99

Y 15 12 13 11 12 12 19 26

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Solution to Ex. 1:

Calculation of Karl Pearson’s Correlation and PE

X = 104 Y = 15
X d=X-X ∑d2 Y d=Y-Y ∑d2 ∑XY
100 -4 16 15 0 0 0
102 -2 4 12 -3 9 + 6
104 0 0 13 -2 4 0
107 +3 9 11 -4 16 - 12
105 +1 1 12 -3 9 - 3
112 +8 64 12 -3 9 - 24
103 -1 1 19 4 16 - 4
99 -5 25 26 11 121 - 55

∑x=832 ∑d2=120 ∑y=120 ∑d2=184 ∑xy = -92

CCP403.11 6
Solution contd

X
 X
N

832
  104
8

x 
 d2

120
  15  3.875
8

CCP403.11 7
Solution contd:

Y
 Y
N
120
  15
8

Y 
 d2


184
 23  4.795
N 8

r
 XY 
92

92
N X  Y 8x3.872x4.795 148.53

r  0.619 CCP403.11 8
Solution contd

1 r 2
PE  0.6745
N
1  ( 0.619)2
 0.6745
8
1  (0.3831)
 0.6745
8
0.6169
 0.6745
8
= 0.6745 X 0.218

Therefore, PE = 0.14713
CCP403.11 9
Example 2
If r = 0.917 and P.Er = 0.034, find out N

Sol: 1 r 2
PE  0.6745
N
Given: PE = 0.034

r = 0.917

Substituting values in the formula:

1  (0.917)2
0.034  0.6745
N
CCP403.11 10
Solution contd

0.159
0.034  0.6745X
N
When cross-multiplied,
0.034 N  0.1072
0.1072
N
0.034
= 3.153

Therefore, N = (3.153)2 = 9.94 (or) 10

Thus, there are 10 pairs of observations

CCP403.11 11
Summary

In this class, YOU learnt to calculate the

Value of ‘N’ when the values of Correlation

Coefficient (r) and the PE are given in the

problem.

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Quiz

1) The correlation limits in a population are?

a) Correlation Coefficient / SD

b) Correlation x Means of X and Y

c) r + PE

d) None of the above

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Frequently Asked Questions:
1. Calculate coefficient of correlation and find its
probable error from the following data:

X 7 6 5 4 3 2 1

Y 18 16 14 12 10 6 8

Ans: r = + 0.9643; P.E= 0.0179

CCP403.11 14
Assignment
1. Calculate coefficient of correlation and find its
probable error from the following data:

X 30 32 35 40 48 50 52 55 57 61

Y 1 0 2 5 2 4 6 5 7 8

Ans: r = + 0.8742; P.E= 0.0277

CCP403.11 15
Assignment
2. Calculate coefficient of correlation and find its
probable error from the following data:

X 28 41 40 38 35 33 40 32 36 33

Y 23 34 33 34 30 26 28 31 36 38

Ans: r = + 0.44; P.E= 0.1719

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Assignment
3. Calculate coefficient of correlation and find its
probable error from the following data:

X 23 27 28 28 29 30 31 33 35 36

Y 18 20 22 27 21 29 27 29 28 29

Ans: r = + 0.655; P.E= 0.1217

CCP403.11 17
 Assignment

4) For more problems on Probable Error, please refer to:

a) “Statistics – Problems and Solutions” by V.K.Kapoor
b) “Fundementals of Statistics” by S.C.Gupta
c) “Statistical Methods” by S.P.Gupta
d) “Quantitative Techniques” by S.L.Agarwal & Bharadwaj
e) Any other text book suggested by your teacher
f) Previous years’ exam question papers of SBTET

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