BGMEA University of

Fashion & Technology

Principle of Statistics
STAT4101

Presentation on Correlation,
Sampling & Time series

SUBMITTED TO

MS. NAZNIN FIROZA

L E C T U R E R , D E PA RT M E N T O F S C I E N C E

B G M E A U N I V E R S I T Y O F FA S H I O N & T E C H N O L O G Y
 Name ID

GROUP Mohammad Rajib Mohon 181-001-111

Rakibul Islam Shifat 181-009-111
MEMBERS Md Abedur Rahman Tusher 181-012-111
Noor A Arakan 181-013-111
Nayeem Siddiq 181-018-111
Correlation
A correlation is a statistical measure of the relationship between two variables. The measure is
best used in variables that demonstrate a linear relationship between each other.

It’s a common tool for describing simple relationships

without making a statement about cause and effect.

In short,
Correlation is the Linear relationship between two variables.

For example,
We can see the relation between height & weight.
Types of Correlation
Positive Correlation Negative Correlation Zero Correlation
The variables tend to move in the The variables tend to move in the There is no relationship between the
same direction  opposite direction  two variables.

◦X Y ◦ X Y
◦X Y ◦ X Y
Correlation Coefficients
Correlation coefficients are used to measure how strong a relationship is between
two variables.

Correlation coefficient formulas are used to find how strong a relationship is

between data.

 Here,  
Correlation Coefficients, r =

The range of correlation coefficient (r) is -1 ≤ r ≤ 1

 1 indicates a strong positive relationship. n = Sample Size

 -1 indicates a strong negative relationship.
 A result of zero indicates no relationship at
all.
Example Question
Find the value of the correlation coefficient from the following table:

Sl No. Age Glucose Level

1 43 99
2 21 65
3 25 79
4 42 75
5 57 87
6 59 81
Solutions
Make a chart. Use the given data, and add three more columns: xy, x2, and y2.
Sl No. Age (x) Glucose xy x² y²
Level (Y)
1 43 99 4257 1849 9801

2 21 65 1365 441 4225

3 25 79 1975 625 6241

4 42 75 3150 1764 5625

5 57 87 4959 3249 7569

6 59 81 4779 3481 6561

= 247 = 486 = 20486 ² = 11409 ² = 40022

Here Sample Size, n = 6

We
  know,
Correlation Coefficients, r =

= 0.5298

The range of correlation coefficient (r) is -1 ≤ r

≤1

Our result is 0.5298 or 52.98%, which means the variables have a

moderate positive correlation.
Sampling
Sampling is a process used in statistical analysis in which a
predetermined number of observations are taken from a
larger population.
Samples are parts of a population.

For example,
We might have a list of information on 100 people out of
10,000 people. You can use that list to make some assumptions
about the entire population’s behavior.
Probability Sampling
Probability sampling involves random selection, allowing you to
make strong statistical inferences about the whole group.

Probability sampling means that every member of the population

has a chance of being selected. It is mainly used in quantitative
research.

Probability sampling eliminates bias in the population and gives all

members a fair chance to be included in the sample.
Examples
For example,
In a population of 1000 members, every member will have a 1/1000
chance of being selected to be a part of a sample.

Another one can be,

The company has 800 female employees and 200 male employees. You
want to ensure that the sample reflects the gender balance of the company,
so you sort the population into two strata based on gender. Then you use
random sampling on each group, selecting 80 women and 20 men, which
gives you a representative sample of 100 people.
Uses of Probability Sampling
 Reduce Sample Bias: Using the probability sampling method, the bias in the sample derived from a
population is negligible to non-existent. Probability sampling leads to higher quality data collection as the
sample appropriately represents the population.

 Diverse Population: When the population is vast and diverse, it is essential to have adequate
representation so that the data is not skewed towards one demographic.

For example, if Square would like to understand the people that could make their
point-of-sale devices, a survey conducted from a sample of people across the US from
different industries and socio-economic backgrounds helps.

 Create an Accurate Sample: Probability sampling helps the researchers plan and create an
accurate sample. This helps to obtain well-defined data.
Non-probability Sampling
Non-probability sampling is a sampling method in which not all members of the
population have an equal chance of participating in the study, unlike probability
sampling.

Here,
Individuals are selected based on non-random criteria, and not every individual
has a chance of being included.

This type of sample is easier and cheaper to access, but it has a

higher risk of sampling bias. That means the inferences you can
make about the population are weaker than with probability
samples
Examples
For example,
You are researching opinions about student support services in your university, so after each of your
classes, you ask your fellow students to complete a survey on the topic. This is a convenient way to gather
data, but as you only surveyed students taking the same classes as you at the same level, the sample is not
representative of all the students at your university

Another one can be,

You are researching experiences of homelessness in your city. Since there is no list of all homeless people in
the city, probability sampling isn’t possible. You meet one person who agrees to participate in the research,
and she puts you in contact with other homeless people that she knows in the area.
Uses of Non-probability Sampling
 Create a hypothesis: Researchers use the non-probability sampling method to create an assumption
when limited to no prior information is available. This method helps with the immediate return of
data and builds a base for further research.

 Exploratory research: Researchers use this sampling technique widely when conducting

qualitative research, pilot studies, or exploratory research.

 Budget and time constraints: The non-probability method when there are budget and time
constraints, and some preliminary data must be collected. Since the survey design is not rigid, it is
easier to pick respondents at random and have them take the survey or questionnaire.
Differences between Probability &
Non-probability Sampling Methods
Probability Sampling Methods
Probability Sampling is a sampling
technique in which samples from a larger
Definition
population are chosen using a method based
on the theory of probability.
Alternatively
Random sampling method.
Known as
Population
The population is selected randomly.
selection
Nature The research is conclusive.
Since there is a method for deciding the
Sample sample, the population demographics are
conclusively represented.
Non-Probability Sampling Methods
Non-probability sampling is a sampling
technique in which the researcher selects
samples based on the researcher’s subjective
judgment rather than random selection.
Non-random sampling method
The population is selected arbitrarily.
The research is exploratory.
Since the sampling method is arbitrary, the
population demographics representation is
almost always skewed.
Differences between Probability &
Non-probability Sampling Methods

Probability Sampling Methods Non-Probability Sampling Methods

Takes longer to conduct since the research This type of sampling method is quick since
Time Taken design defines the selection parameters neither the sample or selection criteria of the
before the market research study begins. sample are undefined.
This type of sampling is entirely unbiased This type of sampling is entirely biased and
Results and hence the results are unbiased too and hence the results are biased too, rendering the
conclusive. research speculative.
In probability sampling, there is an
underlying hypothesis before the study In non-probability sampling, the hypothesis is
Hypothesis
begins and the objective of this method is to derived after conducting the research study.
prove the hypothesis.
Time Series
A time series is a collection of observations of well-defined data items
obtained through repeated measurements over time.

Time series data is everywhere, since time is a constituent of

everything that is observable.

Weather records, economic indicators and patient health evolution

metrics — all are time series data. Time series data could also be server
metrics, application performance monitoring, network data, sensor
data, events, clicks and many other types of analytics data.

Data collected irregularly or only once are not time series.

Components of Time Series
 Trend: The trend shows a general direction of the time series data over a long period of time. A trend can
be increasing(upward), decreasing(downward), or horizontal(stationary).

Quarterly Gross Domestic

Product
Components of Time Series
 Seasonality: The seasonality component exhibits a trend that repeats with respect to timing, direction, and
magnitude. Some examples include an increase in water consumption in summer due to hot weather
conditions, or an increase in the number of airline passengers during holidays each year.

Monthly Retail Sales in a Retail Department

Stores
Components of Time Series
 Cyclical Component:  These are the trends with no set repetition over a particular period of time. A cycle
refers to the period of ups and downs, booms and slums of a time series, mostly observed in business cycles.
These cycles do not exhibit a seasonal variation but generally occur over a time period of 3 to 12 years
depending on the nature of the time series.
Components of Time Series
 Irregular Variation:  These are the fluctuations in the time series data which become
evident when trend and cyclical variations are removed. These variations are
unpredictable, erratic, and may or may not be random.

Monthly Value of Building Approvals, Australian Capital Territory

(ACT)