Applications Of

Statistics In
Construction
COURSE INSTRUCTOR
VIRENDRA BALON
vbalon@nicmar.ac.in, Extension: 309
 Review
I am examining differences in the mean between groups

Means come from the same group?

No
Yes

Comparing Comparing mean

means of 2 of a group against
groups? a known mean?

?
Independent
Sample T-test ?
One-sample T-
test ?
Paired t-test
 Differences or Relationships?

I am examining
I am examining
relationships
differences
between variables
between groups

Hypothesis Testing Correlation,

Regression Analysis
Correlation
 Example of Correlation
Is there an association between:
❑Urban growth and air quality
❑Children’s IQ and Parents’ IQ
❑Number of police patrol and number of crime
❑Degree of social trust and number of membership in
voluntary association
❑Funding and number of publication by Ph.D. students
 Correlation

❑Correlation is a measure of the degree of relatedness of variables.

❑Correlation coefficient (r) : statistical index of the degree to which two
variables are associated, or related.
❑Applicable only if both variables being analyzed have at least an interval
level of data.
❑Measures the direction and strength of the linear relationship
between two quantitative variables
❑There is no assumption of causality

❑Assumes a linear association between two variables

 Pearson Product-Moment
Correlation Coefficient

SSXY
r=
( SSX )( SSY )

=
 ( X − X )(Y − Y )
 ( X − X )  (Y −Y )
2 2
−1 r  1
(  X )( Y )
 XY − n
=

 2
−
(  X)
2

  Y 2 −
(Y ) 
2

 X n  n 
  
 Direction of the relationship
Variables can be positively or negatively correlated.
Positive correlation: A value of one variable increase,
value of other variable increase.
Negative correlation: A value of one variable increase,
value of other variable decrease.
No correlation: the value of r is close to 0
 Strength of the relationship
The magnitude of correlation:
❑Indicated by its numerical value
❑ignoring the sign
❑expresses the strength of the linear relationship between the
variables.
Correlation Coefficient r

-1 ≤ r ≤ 1

r = 0.9

r = 0.01

r = -0.9
 Degrees of Correlation

❑The term (r) is a measure of the linear correlation of two

variables
❑The number ranges from -1 to 0 to +1
❑Positive correlation: as one variable increases, the other
variable increases
❑Negative correlation: as one variable increases, the other
one decreases
❑No correlation: the value of r is close to 0
❑Closer to +1 or -1, the higher the correlation between the
dependent and the independent variables
 Correlation r – basic assumptions
❑No distinction between explanatory (x) and response (y)
variable.
❑Requires both variables to be quantitative or continuous
variables
❑Both variables must be normally distributed. If one or
both are not, either transform the variables to near
normality or use an alternative non-parametric test of
Spearman
❑Use Spearman Correlation coefficient when the shape
of the distribution is not assumed or variable is
distribution-free.
 Correlation r – basic assumptions
❑No categorical or nominal variables
❑r does not change when we change the units of
measurement. For example, from Kg to pounds for
weight. Why?
❑ r uses standardized values of the observations.
❑r does not measure nor describe curved or non-linear
association no matter how strong.
❑Like the mean and SD, r is not resistant or uninfluenced
by outliers.
❑ r is strongly affected by outlier or outlying
observations.
 Computation of r for
the Economics Example

Day Interest (X) Future Index (Y)

1 7.43 221
2 7.48 222
3 8 226
4 7.75 225
5 7.6 224
6 7.63 223
7 7.67 223
8 7.68 226
9 7.59 226
10 8.07 235
11 8.03 231
12 8 241
 Computation of r for
the Economics Example (Part 1)

Future
Day Interest (X) Index (Y) X2 Y2 XY
1 7.43 221 55.2049 48841 1642.03
2 7.48 222 55.9504 49284 1660.56
3 8 226 64 51076 1808
4 7.75 225 60.0625 50625 1743.75
5 7.6 224 57.76 50176 1702.4
6 7.63 223 58.2169 49729 1701.49
7 7.67 223 58.8289 49729 1710.41
8 7.68 226 58.9824 51076 1735.68
9 7.59 226 57.6081 51076 1715.34
10 8.07 235 65.1249 55225 1896.45
11 8.03 231 64.4809 53361 1854.93
12 8 241 64 58081 1928
SUM 92.93 2723 720.2199 618279 21099.04
 Computation of r
Economics Example (Part 2)

(  X )(  Y )
 XY −
n
r=


(  X )
2
  ( )
Y 
2

X − n   Y − n 
2 2


  
( 92.93)( 2725)
(21,115.07) −
= 12

( 720.22) −
(
92 .93 )2
 (
 ( 619,207) − 2725
) 2

 12  12 
  
=.815
 Computation of r
Economics Example (Part 3)

Is r = 0.815 high or low?

What can we conclude about the variables of interest?
BP and Age No
1
SBP (x)
90
Age (Y)
12.5
2 88 12.1
3 100 13.6
4 70 10
5 80 11.2
6 90 12
7 100 13.4
8 102 13.8
9 120 16.8
10 110 15.6
11 89 12.3
12 80 12
13 90 12.7
14 100 13.7
15 87 12
16 93 12.8
17 82 11.6
18 102 14
19 93 13
20 86 11.9
 No SBP (Y) Age (X) Y2 X2 XY
1 90 12.5 8100 156.25 1125
2 88 12.1 7744 146.41 1064.8
3 100 13.6 10000 184.96 1360
4 70 10 4900 100 700
5 80 11.2 6400 125.44 896
6 90 12 8100 144 1080
7 100 13.4 10000 179.56 1340
8 102 13.8 10404 190.44 1407.6
9 120 16.8 14400 282.24 2016
10 110 15.6 12100 243.36 1716
11 89 12.3 7921 151.29 1094.7
12 80 12 6400 144 960
13 90 12.7 8100 161.29 1143
14
15
16
100
87
93
13.7
12
12.8
10000 187.69
7569
8649
144
1370
1044
163.84 1190.4
r=
17
18
19
82
102
93
11.6
14
13
6724
10404
8649
134.56
196
169
951.2
1428
1209
.98
20 86 11.9 7396 141.61 1023.4
Sum 1852 257 173960 3345.94 24119.1
Weight (kg) Age

38 12.5
45 12.1
35 13.6
50 10.0
60 11.2
45 12.0
30 13.4
51 13.8
53 16.8
40 15.6
43 12.3
39 12.0
41 12.7
40 13.7
50 12.0
56 12.8
52 111.6
62 14.0
39 13.0
44 11.9
 Weight
Age (Y)
No (kg) (X) X2 Y2 XY
1 38 12.5 1444 156.25 475
2 45 12.1 2025 146.41 544.5
3 35 13.6 1225 184.96 476
4 10 2500 100 500
5 60 11.2 3600 125.44 672
6 45 12 2025 144 540
7 30 13.4 900 179.56 402
8 51 13.8 2601 190.44 703.8
9 53 16.8 2809 282.24 890.4
10 40 15.6 1600 243.36 624
11 43 12.3 1849 151.29 528.9
12 39 12 1521 144 468
13 41 12.7 1681 161.29 520.7
14
15
40
50
13.7
12
1600
2500
187.69
144
548
600
r=
16
17
18
56
52
62
12.8
111.6
14
3136 163.84 716.8
2704 12454.56 5803.2
3844 196 868
.17
19 39 13 1521 169 507
20 44 11.9 1936 141.61 523.6
Sum 913 357 43021 15665.94 16911.9