Correlation Analysis

It is a method used to measure the strength of relationship between two or more variables.
A positive correlation
A negative correlation
Zero correlation
Pearson r (when the data are in interval or ratio scale)

The Pearson Product Moment Coefficient of Correlation r is the index of relationship between two
variables. The independent variable can be represented by x while the dependent variable can be represented by
y. The value of r is +1, zero, to -1. If the value of r is +1, there is a perfect positive correlation between x and y.
Thus -1 implies perfect negative correlation. It can be said that x influences y or y depends on x. However, if r
equals zero, then x and y are independent of each other.
Value of r Interpretation
n ∑ XY −∑ X ∙ ∑ Y ±1 Perfect Correlation
r=
√ [ n∑ X −(∑ X ) ][ n ∑ Y −(∑ Y ) ]
2 2 2 2 ± 0.80 ¿ ± 0.99
± 0.60 ¿ ± 0.79
High Correlation
Moderately High
Correlation
± 0.40 ¿ ± 0.59 Moderately Correlation
where r = the coefficient of correlation ± 0.20 ¿ ± 0.39 Low Correlation
n = number of paired observations ± 0.01 ¿ ±0.19 Negligible Correlation
∑ XY = the sum of the products of X and Y 0 No Correlation
∑ X = the sum of the squared values of X
2

∑ Y = the sum of the squared values of Y

2

∑ X = the sum of the values of X

∑ Y = the sum of the values of Y

Why do we use r?
We use r because we want to analyze if a relationship exists between two
variables. If there is a relationship that exists between x and y, then we can
determine the extent that of x influences y by means of the coefficient of
determination which is equal to the square of r and multiplied by 100%. This
can answer or explain how much the dependent variables or how much y depends
on x. this is how the degree of relationship between x and y which cannot be seen in
other statistical tests of relationship.
Simple Linear Regression Analysis
It predicts the value of y given the value of x

When do we use the simple linear regression analysis?

When there is a relationship between the x independent variable and the y dependent variable. This is
used in predicting the value of y given the value of x which is used for forecasting and prediction.
y= a + bx or y = bx + a
where: y = the dependent variable
x = independent variable
a= the y intercept
b = the slope of the line

 The slope b and the y-intercept a are found using the formulas,

( ∑ Y ) ( ∑ X 2 )− ( ∑ X )( ∑ XY )
a=
n (∑ X )− ( ∑ X )
2 2
 n ( ∑ XY ) −( ∑ X )( ∑ Y )
b=
n ( ∑ X ) −( ∑ X )
2 2

A. Compute r and complete the table below.

The following data pertains to the heights of fathers and their eldest sons in inches.

Height of the Height of the Son

Father y
x
58 60
60 65
70 72
68 70
63 66
66 68
65 68
69 71
69 69
71 71

X Y XY X2 Y2
58 60 3480 3364 3600
60 65 3900 3600 4225
70 72 5040 4900 5184
68 70 4760 4624 4900
63 66 4158 3969 4356
66 68 4488 4356 4624
65 68 4420 4225 4624
69 71 4899 4761 5041
69 69 4761 4761 4761
71 71 5041 5041 5041
∑ X=¿ ¿ ∑ Y =680 ∑ XY =¿ 44947 ¿ ∑
2
X =¿ ∑ Y 2=¿
659 43601 46356
n = 10

n ∑ XY −∑ X ∙ ∑ Y ( 10 ) ( 449 47 )−( 659 ) (680)

r= r=
√ [ n∑ X −(∑ X ) ][ n ∑ Y −(∑ Y ) ]
2 2 2 2
√ [ 10 ( 43601 )− ( 659 ) ] [ (10 )( 46356 )−(680) ]
2 2

( 449 47 0 )−448120
r=
√ [ ( 43601 0 )−434281 ] [ ( 46356 0 )−462400 ]
1350
√ [ 1729 ][ 1160 ]
1350 1350
= =0.95 positive high correlation
√2005640 1416.2062

a) Predict the height of the son if the height of the father is 75

inches
( ∑ Y ) ( ∑ X 2 )− ( ∑ X )( ∑ XY )
y= a + bx a= = 16.55
n (∑ X )− ( ∑ X )
2 2

n ( ∑ XY ) −( ∑ X )( ∑ Y )
b= = 0.78
n ( ∑ X ) −( ∑ X )
2 2

y= a + bx
y= 16.55 + 0.78(75)
y = 75.05 inches
 Value of r Interpretation
n ∑ XY −∑ X ∙ ∑ Y ±1 Perfect Correlation
r=
√ [ n∑ X −(∑ X ) ][ n ∑ Y −(∑ Y ) ]
2 2 2 2 ± 0.80 ¿ ± 0.99
± 0.60 ¿ ± 0.79
High Correlation
Moderately High
Correlation
± 0.40 ¿ ± 0.59 Moderately Correlation
± 0.20 ¿ ± 0.39 Low Correlation
± 0.01 ¿ ±0.19 Negligible Correlation
0 No Correlation

b) Predict the height of the son if the height of the father is 75

inches
y= a + bx
y = 16.55 +0.78(75)
y = 75.05