STA404

Regression & Correlation Analysis

Lesson 7-1

Multiple Correlation
Finding correlation between one variable
and other group of variables Simultaneously
 Some Change in Notations

Variable 1 Variable 2 Variable 3

Independent Dependent Dependent
X1 X2 X3
. . .
. . .

• Variables are numbered 1, 2 and 3 by subscript

• Subscript 1 shows dependent and 2 and 3 show independent variables
Some Change in Notations
Which OTHER variable is
included in equation

Shows DEPENDET
Coefficients is attached with
variable
which variable
 Multiple Correlation
• It study the effects of ALL the independent variables simultaneously
on a dependent variable.

• For example, the correlation co-efficient between the yield of rice

(X1) AND ALL other variables like type of seeds (X2), fertilizer (X3),
rainfall (X4), humidity (X5) is the multiple correlation co-efficient.

• This multiple correlation coefficient is symbolized by R1.2345

• It can be can be computed by using the values of the individual

correlation coefficients.
Multiple Correlation Coefficient - Formula
The coefficient of multiple correlation between X1 and the variables X2 and
X 3 combined , is denoted by R1.23 and calculated by:

Variable 1 Variable 2 Variable 3

r122  r132  2r12 r23 r13
R1.23  2
Independent Dependent Dependent
1  r23 X1 X2 X3
. . .
. . .

Where ;
r12 = r21 = Simple correlation between variable 1 and 2
r13 = r31 = Simple correlation between variable 1 and 3
r23 = r32 = Simple correlation between variable 2 and 3
 Multiple Correlation Coefficient –
Other Forms of Formula
The coefficient of multiple correlation between X1 and the variables X2 and
X 3 combined , is denoted by R1.23 and calculated by:
Variable 1 Variable 2 Variable 3
r122  r132  2r12 r13 r23 Independent Dependent Dependent
R1.23  2 X1 X2 X3
1  r23
. . .
Similarly, . . .

R2.13  ?
R3.12  ?
 Swapping Subscript
The coefficient of multiple correlation between X1 and the variables X2 and
X 3 combined , is denoted by R1.23 and calculated by:

r122  r132  2r12 r13 r23

R1.23  2
1  r23
r122  r132  2r12 r13 r23
R1.32 
1  r232
Similarly,

R2.13  R2.31
R3.12  R3.21
Multiple Correlation – Main Points
• The value of R can range from 0 to 1;

• R can never be negative.

• The closer to 1, the stronger the relationship;

• The closer to 0, the weaker the relationship.

• The value of R takes into account all the independent variables

Example: Calculating Multiple Correlation
For multiple regression model the simple correlation coefficients are , ,
Find all the multiple correlation coefficients.

SOLUTION:
r122  r132  2r12 r13 r23
R1.23  2
1  r23

(0.492) 2  (0.927) 2  2(0.492)(0.927)(0.758)

R1.23 
1  (0.758) 2
0.41
R1.23 
0.4254
R1.23  0.4024
 Example: Can you do yourself?
For multiple regression model the simple correlation coefficients are , ,
Find all the multiple correlation coefficients.

SOLUTION:

2 2
r21  r23  2r21r23 r13
R2.13  R3.12 
1  r132
 Summary
• For multiple independent variables, we use
multiple correlation
• It is correlation between one variable with
others multiple/group of variables
• It is denoted by like: R1.23
• Using simple correlations, we can find out the
multiple correlation
• Its range is from 0 to +1
The END