Simple linear correlation analysis

Coefficient of correlation “ Pearson ”

∑( X – X ) ( Y – Y )
r = ‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬
∑( X – X )2 * ∑( Y – Y )2
Where :
X Value of the first 1st variable
Y Value of the second 2nd variable
X Mean of the first 1st variable
∑X
= ‫ــــــــــ‬
n
Y Mean of the second 2nd variable
∑Y
= ‫ــــــــــ‬
n
n Number of observations
N.B
–1<r<1
N.B Sign ( r )

+ –

direct indirect ( inverse )

N.B Value (r)

Less than between 0.8 or more

0.5 0.5 – 0.8

Weak Moderate Strong

* r = zero No Correlation
N.B
Coefficient of determination = R2
o < R2 < 1
N.B
Scatter diagram
y y

X X
Direct Inverse (Indirect)
Ex.
In a study of the relationship between two variables X
and Y, the following information was given :
X 10 9 8 7 6
Y 8 5 4 2 1

(a) Draw a scatter diagram.

(b) Find coefficient of correlation
and calculate coefficient of determination.
Sol.
(a) Scatter diagram
8
7
6
5
4
3
2 (Direct)
1
6 7 8 9 10
‫‪(b) Coefficient of correlation‬‬
‫‪X‬‬ ‫‪Y‬‬ ‫‪X–X‬‬ ‫‪Y-Y‬‬ ‫‪(X-X)2‬‬ ‫‪(Y-Y)2‬‬
‫)‪(X-X) (Y-Y‬‬
‫‪X–8‬‬ ‫‪Y-4‬‬
‫‪10‬‬ ‫‪8‬‬ ‫‪2‬‬ ‫‪4‬‬ ‫‪8‬‬ ‫‪4‬‬ ‫‪16‬‬
‫‪9‬‬ ‫‪5‬‬ ‫‪1‬‬ ‫‪1‬‬ ‫‪1‬‬ ‫‪1‬‬ ‫‪1‬‬
‫‪8‬‬ ‫‪4‬‬ ‫‪0‬‬ ‫‪0‬‬ ‫‪0‬‬ ‫‪0‬‬ ‫‪0‬‬
‫‪7‬‬ ‫‪2‬‬ ‫‪-1‬‬ ‫‪-2‬‬ ‫‪2‬‬ ‫‪1‬‬ ‫‪4‬‬
‫‪6‬‬ ‫‪1‬‬ ‫‪-2‬‬ ‫‪-3‬‬ ‫‪6‬‬ ‫‪4‬‬ ‫‪9‬‬
‫‪40‬‬ ‫‪20‬‬ ‫‪0‬‬ ‫‪0‬‬ ‫‪17‬‬ ‫‪10‬‬ ‫‪30‬‬
‫‪∑X‬‬ ‫‪40‬‬ ‫‪∑Y‬‬ ‫‪20‬‬
‫ــــــــــــــ = ــــــــــ = ‪X = 8‬‬ ‫ــــــــــــــ = ــــــــــ = ‪Y = 4‬‬
‫‪n‬‬ ‫‪5‬‬ ‫‪n‬‬ ‫‪5‬‬

‫)‪∑(X–X)(Y–Y‬‬ ‫‪17‬‬ ‫‪17‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــ = ــــــــــــــــــــــــــ = ــــــــــــــــــ = ‪r = 0.98‬‬
‫‪∑ ( X – X )2 * ∑ ( Y – Y ) 2‬‬ ‫‪10X30‬‬ ‫‪17.33‬‬

‫‪direct, strong correlation‬‬

Coefficient of determination R2 = (0.98)2 = 0.96
 Exercises
Draw a scatter diagram, find r , R2 and test the
significance of coefficient of correlation by SPSS
a- X 3 5 6 7 9
Y 4 7 8 9 12
Ans.: r = 0.997, R2 = 0.994,

b- X 0 1 2 3 4
Y 3 5 10 12 15
Ans.: r = 0.99, R2 = 0.98,

c- X 2 4 6 8 10
Y 7 7 6 4 1
Ans.: r = -0.93, R2 = 0.86,