The linear correlation coefficient is the ratio between the covariance and the product of standard deviations of both

variables.

The linear correlation coefficient is denoted by the letter r.

Properties of the Correlation Coefficient

1. The correlation coefficient does not change the measurement scale.

That is, if the height is expressed in meters or feet, the correlation coefficient does not change.

2. The sign of the correlation coefficient is the same as the covariance . 3. The linear correlation coefficient is a real number between 1 and 1.
1 r 1

4. If the linear correlation coefficient takes values closer to 1,

the correlation is strong and negative , and will become stronger the closer r approaches 1.

5. If the linear correlation coefficient takes values close

to 1 the correlation is strong and positive , and will become stronger the closer r approaches 1

6. If the linear correlation coefficient takes values close to 0,

the correlation is weak.

7. If r = 1 or r = 1, there is perfect correlation and the line on the

scatter plot is increasing or decreasing respectively.

8. If r = 0, there is no linear correlation .

Example

The scores of 12 students in their mathematics and physics classes are:

Mathematics Physics

2 1

3 3

4 2

4 4

5 4

6 4

6 6

7 4

7 6

8 7

10 9

10 10

Find the correlation coefficient distribution and interpret it.

xi 2 3 4 4 5 6 6 7 7 8

yi 1 3 2 4 4 4 6 4 6 7

xi yi 2 9 8 16 20 24 36 28 42 56

xi2 4 9 16 16 25 36 36 49 49 64

yi2 1 9 4 16 16 16 36 16 36 49

10 10 72

9 10 60

90 100 431

100 100 504

81 100 380

1 Find the arithmetic means.

2 Calculate the covariance.

3 Calculate the standard deviations.

4 Apply the formula for the linear correlation coefficient.

The correlation is positive.

As the correlation coefficient is very close to 1, the correlation is very strong.

The values of the two variables X and Y are distributed according to the following table:

Y/X 1 2 3

0 2 1 2

2 1 4 5

4 3 2 0

Calculate the correlation coefficient.

Turn the double entry table into a single table.

xi yi 0 0 0 2 2 2 4 4 1 2 3 1 2 3 1 2

fi 2 1 2 1 4 5 3 2 20

xi fi 0 0 0 2 8 10 12 8 40

xi2 fi 0 0 0 4 16 20 48 32 120

yi fi 2 2 6 1 8 15 3 4 41

yi2 fi 2 4 18 1 16 45 3 8 97

xi yi fi 0 0 0 2 16 30 12 16 76

The correlation is negative.

As the correlation coefficient is very close to 0, the correlation is very weak.