IMMACULADA CONCEPSION COLLEGE

MATH Q – QUANTITATIVE TECHNIQUES IN MATHEMATICS

MODULE 8: REGRESSION AND CORRELATION

LEARNING OBJECTIVES
At the end of discussion, the students should
 Identify REGRESSION and CORRELATIONS
 Determine the relationship between two variables

CORRELATIONS AND REGRESSION

Correlation and regression are two most commonly used techniques for
investigating the relationship between quantitative variables. Here regression is referred to
linear regression. Correlation is used to give relationship between the variables whereas
linear regression uses an equation to express this relationship

As mentioned, correlation and regression are utilized to find out the degree of
relationship between two sets of distribution. The degree of relationship, such as that
between two groups, may be described as very high, moderately high, moderately low, or
negligible depending upon, the strength of relationship that may exist between two
different distributions.

THE COEFFICIENT OF CORRELATION

Correlation is a measure of the strength of relationship and the direction of the

relationship. The coefficient of correlations can range from -1 to +1. The sign tells the
direction of the relationship and the numerical values indicate as strength. For Instance, a
correlation of 0.72 and -0.72 are of the same size. The sign does not have anything to do
with the size of the relationship, rather it indicates the direction of the relationship.

INTERPRETING COEFFICIENT OF CORRELATION

In interpreting the values of coefficient of correlation, the following table of

categorization is used:

r (p) Descriptive Level

± 1.00 perfect correlation
Between ± 0.75 to 0.99 High correlation
Between ± 0.51 to 0.74 Moderately High Correlation
Between ± 0.31 to 0.50 Moderately low Correlation
Between ± 0.01 to 0.30 Low Correlation
0.0 No Correlation
PEARSON PRODUCT-MOMENT COEFFICIENT OF CORRELATION

The most commonly used measure of correlation is the Pearson Product-Moment

coefficient of correlation. It is denoted by small letter (r).

The formula is as follows

r=
[ n ∑ XY −( ∑ X ) ( ∑ Y ) ]
√ [ n ∑ X −( ∑ X ) ] [n ∑ Y −( ∑ Y ) ]
2 2 2 2

where r = coefficient of correlation

X = the first set of test scores
Y = the second set of test scores
n = total number of pairings

The steps in determining the coefficient of correlation using Pearson Product –

Moment are as follows:

1. Write the pairs of set of test scores to be studied in two columns, that is X
column and Y column
2. Get the sum of the first set of scores (X), that is ∑X
3. Compute the sum of the second set of scores (Y) to get ∑Y.
4. Multiply each test scores in the X column by its corresponding pairs of test
score in the Y column. Write the product in XY column, get the summation,
that is ∑XY.
5. Square all scores in the X – column and write the results in X 2 column, after
which, get the summation that is ∑ X 2
6. Square also all scores in the Y – column and write the results in the Y 2 column,
after which, get the summation, that is ∑ Y 2
7. Determine the total number of pairs of test scores (n).
8. Compute the product of ∑X and ∑Y to get ∑X∑Y.
9. Multiply the sum of step 4 by n, to get n ∑XY
10. Subtract step 8 from step 9
11. Multiply the sum of step 5 by n
12. Subtract the product of step 11 from the square of the sum in Step 2
13. Multiply the sum of step 6 by n
14. Subtract the product of step 13 from the square of the sum in step 3
15. Multiply the differences in step 12 and step 14, then take the square root
16. Divide step 10 by step 15, the result is the Pearson product-moment coefficient
of correlation
EXAMPLE
Calculation of Pearson Product – Moment Coefficient of Correlation Between two
stores X and Y sales in Ten (10) days
2 2
Math (X) Science (Y) XY X Y
20 17 340 400 289
18 14 288 324 256
13 10 130 169 100
17 15 255 289 225
15 14 210 225 196
13 12 156 169 144
13 10 130 169 100
15 12 180 225 144
10 7 70 100 49
7 5 35 49 25
141 118 1794 2119 1528

r=
[ 10 ( 1794 ) −( 141 )( 118 ) ]
√ [ 10 ( 2119 )−( 141 ) ] ¿ ¿ ¿
2

As noted from the table, the result or value of the Pearson Product – Moment
coefficient of correlation is positive (0.98), which implies that there is an indication of a
very high correlation between store X and Y sales. This means that when the sales in Store
X are increased (decreased) then the Sales in Y are also increased (decreased).

ACTIVITY

1. The sales of eight (8) days are shown below. What can you say about the strength
of the correlation in their scores in Store A and B?

Store A 43, 40, 38, 35, 27, 25, 41, 24,

Store B 38, 37, 35, 32, 21, 19, 39, 23

2. The raw scores obtained by ten (10) are given below. Is there a relationship in their
scores in Mathematics and Statistics? Use Pearson product – moment coefficient of
correlation to establish their relationship

Students 1 2 3 4 5 6 7 8 9 10
Mathematics 15 27 25 37 19 38 38 18 29 24
Statistics 17 20 18 25 15 30 32 17 25 20