Measures of 01

01 Objectives
Correlation and
02
02 1. Differentiate correlation and regression
Regression
analysis;
Analysis
03
03 2. Draw a scatter plot for the set of ordered
pairs;
04
04
3. Compute and interpret the correlation
coefficient;
05
05
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4. Calculate and interpret the coefficient of
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determination; and
5. Test the significance of a correlation.

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 Correlation
Measures of 01
01 Analysis
Correlation and
Regression 02
02 The process to
Analysis 03
03 measure, analyze, and
interpret the strength of
04
04 such a relation of two
05
05
variables.
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 Correlati
Measures of 01
01
Correlation and onThe test to use or measure the degree of
Regression 02
02
relationship between variables, which
Analysis 03
03
seeks to determine how well a linear
04
04 or other question describes or explains
05
05 the relationship between variables. It
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also implies an “association” between

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two variables.

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 Correlation Coefficient (r)
Measures of 01
01
Correlation and
Regression 02
02 A number between -1
Analysis 03
03 and +1 which provides a
04
04 measure of the strength
05
05
or degree of the linear
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association.
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 Measures of 01
01 Degree of Relation
Correlation and
Regression 02
02
The descriptive
Analysis 03
03 relationship between two
04
04 variables.

TITLE 05
05
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 Measures of 01
01
Correlation and
Regression 02
02
Analysis 03
03

04
04

TITLE 05
05
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 The Pearson Product-Moment
Measures of 01
01
Coefficient of Correlation (r)
Correlation and
Regression 02
02
Analysis
03
03

04
04

05
05
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Sir Karl Pearson (1857-1936)

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 Interpretation of the
Coefficient of Correlation (r)
Measures of 01
01
Correlation and Value of r
Interpretation
Regression 02
02 Positive Negative
Perfect
Analysis 1 Perfect Positive
03
03 Negative
0.75 - 0.99 High Positive High Negative
Moderately Moderately
04
04 0.51 - 0.74
High Positive High Negative
Moderately Low Moderately Low
0.31 - 0.50
05
05 Positive Negative
Slight/Low Slight/Low
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Positive Negative
0 No correlation No Negative
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 Example 1: Describe the degree of
Measures of 01
01 relationship between the students’
Correlation and grades in mathematics and science.
Regression 02
02
STUDEN x y
Analysis 03
03 T (Math Score) (Science Score)
A 81 72
04
04 B 72 70
C 78 80
TITLE 05
05 D 85 80
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E 68 65
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G 52 61
H 91 85
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 a. Ho: There is no relationship between the
students’ grades in mathematics and science.

b. Ha: There is a relationship between the

students’ grades in mathematics and science.
CORRELATION

c. a= 0.01; correlation

d. Decision: if p-value < 0.05 Reject Ho

e. Conclusion:
 Correlations

MATHSC SCIENCE
ORES SCORES
MATHSCORES Pearson Correlation 1 .917**
Sig. (2-tailed) .001
N 8 8
SCIENCESCORES Pearson Correlation .917** 1
Sig. (2-tailed) .001
N 8 8
**. Correlation is significant at the 0.01 level (2-tailed).
 a. Ho: There is no relationship between the
students’ grades in mathematics and science.

b. Ha: There is a relationship between the

students’ grades in mathematics and science.
CORRELATION

c. a= 0.01; correlation

d. Decision: Reject Ho p-value 0.001< 0.05

e. Conclusion: There is a relationship

between the students’ grades in mathematics
and science.
Example 2:
The given data below shows the advertising expenses and
company sales for a period of 12 months. Describe the
relationship between the two variables.

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 a. Ho: There is no relationship between the
advertising expenses and company sales for
a period of 12 months. .

b. Ha: There is a relationship between the

advertising expenses and company sales for
a period of 12 months.
CORRELATION

c. a= 0.01; correlation

d. Decision: if p-value < 0.05 Reject Ho

e. Conclusion:
 Correlations

ADVERTISING COMPAN
EXPENSES YSALES
ADVERTISINGEXPearson Correlation 1 .908**
PENSES Sig. (2-tailed) .000
N 12 12
COMPANYSALES Pearson Correlation .908** 1
Sig. (2-tailed) .000
N 12 12
**. Correlation is significant at the 0.01 level (2-tailed).
 a. Ho: There is no relationship between the
advertising expenses and company sales for
a period of 12 months.

b. Ha: There is a relationship between the

advertising expenses and company sales for
a period of 12 months.
CORRELATION

c. a= 0.01; correlation

d. Decision: Reject Ho p-value 0.000< 0.05

e. Conclusion: There is a relationship

between the advertising expenses and
company sales for a period of 12 months.