STATISTICS

Lecture. (Part IV)

LINEAR CORRELATION ANALYSIS

- Statistical tool for determining the degree of relationship/association

between two or more variables in a paired data set.

Types of Correlation:
1. Positive Correlation – is a connection between two variables in which
both variables move in tandem—that is, in the same route.
A positive correlation occurs when one variable decreases as the
other variable decreases, or one variable increases while the other
increases.

2. Negative Correlation – is a connection between two variables in which

one variable increases as the other decreases, and vice versa. Both
variables move in opposite direction.

3. No Correlation – occurs when the two variables being compared

exhibit no relationship.

Correlation Coefficient - is a statistical gauge of the power of the

relationship between the relative associations of two variables. It ranges from
1.0 to -1.0.

Popular Correlation Coefficient Calculations:

1. Pearson “r” Product Moment Correlation:

n xy   x  y
r
 n x 2   x  2  n y 2   y  2 
       
Where:

n – sample size/number of observations

 x - summation of “x” variable measurements

 y - summation of “y” variable measurements
 xy - summation of the product of “x” and “y”
measurements

x 2
- summation of squares of “x” variable measurements
 y 2
- summation of squares of “y” variable measurements

2. Spearman “rho” Rank Difference Method:

6 D 2
  1
n(n 2  1)
Where;

D2 – summation of squares of rank difference of the two

variables measurements

Interpretations of computed correlation coefficients:

Coefficients Verbal Interpretation

0.80 – 0.99 Very Strong Relationship
0.60- 0.79 Strong Relationship
0.40 – 0.59 Moderate Relationship
0.20 – 0.39 Weak Relationship
0.00 – 0.19 Very Weak/Negligible relationship

Examples:

*Consider the data below:

(PUPCET Grades)→ X: 84, 95, 87, 84, 70;

(HS Average Grades)→ Y:88, 92, 90, 80, 85.

x y xy x2 y2
84 88 7392 7056 7744
95 92 8740 9025 8464
87 90 7830 7569 8100
84 80 6720 7056 6400
70 85 5950 4900 7225

 x  420
 y  435
 xy  36632
x 2
 35606

y 2
 37933
 5  36632    420   435 
r
5  35606    420  2  5  37933   435  2 
  
183160  182700
r
 178030  176400   189665  189225 
460
r
 1630   440 
460
r
846.8766
r  0.54
*POSITIVE MODERATE RELATIONSHIP

x y Rx Ry D D2
84 88 2.5 3 0.5 0.25
95 92 5 5 0 0
87 90 4 4 0 0
84 80 2.5 1 1.5 2.25
70 85 1 2 1 1

D 2
 3.50

6  3.50 
  1
5(25  1)
21
  1
120
  1  0.175
  0.83
*POSITIVE VERY STRONG RELATIONSHIP

LINEAR REGRESSION ANALYSIS

 - Is a statistical tool for forecasting/predicting a value of one variable
given the value of other variable in a paired data and vice versa. For
instance, “x” and “y” variables.

Types:

1. To predict “y” from “x”. → y = a + bx

2. To predict “x” from “y”. → x = a + by

Procedural Formula to be used:

To predict “y” from “x”. → y = a + bx

n xy   x y
b
n x 2    x 
2

a  y - bx
To predict “x” from “y”. → x = a + by

n xy   x y
b
n y 2    y 
2

a  x -by
Examples:

Considering the example previously,

x y xy x2 y2
84 88 7392 7056 7744
95 92 8740 9025 8464
87 90 7830 7569 8100
84 80 6720 7056 6400
70 85 5950 4900 7225

 x  420 x  84

 y  435 y  87

 xy  36632
x 2
 35606

y 2
 37933
To predict “y” from “x”. → y = a + bx

5  36632   420  435 

b
5  35606    420 
2

460
b
1630
b  0.28

a  87   0.28  84
a  63.48
Therefore, the Linear Regression Equation (LRE) to predict “y from x” is:

y  63.48  0.28 x
For instance, you want to predict the y-value given x = 92 (Which is not
under the given data set):

y  63.48  0.28 x
y  63.48  0.28  92 
y  89.24

To predict “x” from “y”. → x = a + by

5  36632   420  435 

b
5  37933   435 
2

460
b
440
b  1.05

a  84   1.05  87
a  7.35
Therefore, the Linear Regression Equation (LRE) to predict “x from y” is:

x  7.35  1.05 y
For instance, you want to predict the x-value given y = 87 (Which is not
under the given data set):

x  7.35  1.05 y
x  7.35  1.05  87 
x  84
Prepared by:

Assoc. Prof. Renato E. Apa-ap

Research Coordinator-Science Cluster
Research Management Office