Correlation

Prepared by:
Prof. Shuchi Mathur
 Definitions

 “ Correlation analysis deals with the association

between two or more variables.”- Simpson & Kafka

 “ Correlation analysis attempts to determine the degree

of relationship between variables.”- Ya Lun Chou

 “ When the relationship is of quantitative nature, the

appropriate statistical tool for discovering & measuring
the relationship & expressing it in brief formula is known
as correlation.:- Croxton & Cowden
Types of correlation
 Positive & Negative
X 10 12 15 18 20
Y 15 20 22 25 37

X 80 70 60 40 30
Y 50 44 31 20 10

 Simple, Multiple & Partial

 Linear & Non linear

Methods of studying Correlation

ø Karl Pearson’s Coefficient of correlation

ø Spearman’s Rank Correlation coefficient
Q1) Find out the coefficient of correlation between
the sales & expenses of the following 10 firms (‘000
Rs.)

Firms 1 2 3 4 5 6 7 8 9 10
Sales 50 50 55 60 65 65 65 60 60 50
Expenses 11 13 14 16 16 15 15 14 13 13

Ans : r= 0.786
Q2) Calculate Coefficient of Correlation between the values
of X & Y given below:

Values of X 65 66 67 67 68 69 70 72
Values of Y 67 68 65 68 72 72 69 71

Ans: r= 0.6030
Q3) The following table gives the distribution of items of production & also the
relatively defective items among them, according to size of groups. Find the
correlation coefficient between size & defect in quality.

Size group No. of items No. of defective items

15-16 200 150
16-17 270 162
17-18 340 170
18-19 360 180
19-20 400 180
20-21 300 114

Ans: r= -0.949
 Ranks are given

Q4) The values of the same 15 students in two subjects

A & B are given below, the two numbers within
the brackets denoting the ranks of the same student
in A & B respectively:
(1,10), (2,7), (3,2), (4,6), (5,4),(6,8), (7,3),(8,1),
(9,11),( 10,15),(11,9),(12,5),(13,14), (14,12), (15,13)

Ans: 0.51
Q5) Ten competitors in a beauty contest are
ranked by 3 judges in the following order:

1st Judge 1 6 5 10 3 2 4 9 7 8
2nd Judge 3 5 8 4 7 10 2 1 6 9
3rd Judge 6 4 9 8 1 2 3 10 5 7

Use the rank correlation coefficient determines which pair of judges

has the nearest approach to common tastes in beauty.
Ans: R= - 0.212
R= - 0.297
R= 0-636
 Ranks are not given

Q6) Calculate the coefficient of rank correlation from the following data:

X 60 34 40 50 45 41 22 43 42 66 64 46
Y 75 32 34 40 45 33 12 30 36 72 41 57

Ans: r= 0.82
Q7) Calculate Spearman’s coefficient of correlation between marks
assigned to 10 students by judges X & Y in a certain competitive

test given below:

S.No. 1 2 3 4 5 6 7 8 9 10
Marks by Judge X 52 53 42 60 45 41 37 38 25 27

Marks by Judge Y 65 68 43 38 77 48 35 30 25 50

Ans: 0.539
 Equal ranks
Q8) Obtain the rank correlation coefficient between the
variables X & Y from the following pairs of observed values.

X 50 55 65 50 55 60 50 65 70 75
Y 110 110 115 125 140 115 130 120 115 160

Ans: 0.155
Q9) Find out the rank correlation coefficient from
the following:

A 115 109 112 87 98 98 120 100 98 118

B 75 73 85 70 76 65 82 73 68 80

Ans : 0.7272
Thank
You