CORRELATION

PEARSON PRODUCT – MOMENT

CORRELATION (PEARSON r)
SPEARMAN RANK CORRELATION
(Rho O
CORRELATION
- Used to measure the degree of relationship between two variables.

Examples:
1. Number of hours studying & final grade
2. Student’s grade in Math and English
3. Hours of playing mobile games & grade in STS - 301
PEARSON’S R CORRELATION

Problem : The owner of a chain of fruit shake store would like to study the correlation between atmospheric
temperature and sales during summer season. A random sample of 6 days is selected with the result given as
follows: use α = 0.05.

Day 1 2 3 4 5 6
Temp (F) 79 76 78 84 90 83
Sales (units) 147 143 147 168 206 155
Construct the Null and Alternative Hypothesis.

Ho : r = 0 (There is no correlation between atmospheric

temperature and total sales of fruit shake.)
Ha : r ≠ 0 (There is a correlation between atmospheric
temperature and total sales of fruit shake.)

Find the point of rejection, d.f. = (n – 2).

= 0.811
PEARSON r =

day x y xy
1 79 147 6241 21609 11613
2 76 143 5776 20449 10868
3 78 147
6084 21609 11466
4 84 168
7056 28224 14112
5 90 206
8100 42436 18540
6 83 155
6889 24025 12865
490 966
40146 158352 79464
PEARSON r =

Pearson r =

r=

r = 0.95
If…. Then the decision is….

Do not reject the Ho (null hypothesis)

Reject the Ho (null hypothesis)

r = 0.95
= 0.811

Reject the Ho, stick with Ha :There is a correlation between atmospheric temperature and total sales of fruit shake.
State the Conclusion.
Answer the following question:
1. Is there a relationship between the two variable being tested?
2. What degree is there relationship or colleration?

1. There is a significant relationship between

atmospheric temperature and total sales of fruit
shake.
2. The correlation is a very high positive correlation.