LINEAR CORRELATION

AND
WEIGHTED MEAN
MICHAEL IVAN S. MAGLANQUE
LINEAR CORRELATION
REFERS TO THE STRAIGHT-LINE RELATIONSHIPS
BETWEEN TWO VARIABLES

IF THE AMOUNT OF CHANGE IN ONE VARIABLE

TENDS TO BEAR CONSTANT RATIO TO THE
AMOUNT OF CHANGE IN THE OTHER VARIABLE
THEN THE CORRELATION IS SAID TO BE LINEAR.
SCATTER DIAGRAM METHOD
The simplest device for ascertaining if the two
variables are related
By looking to the scatter of the various points we can
form an idea as to whether the variables are related or
not.
The greater the scatter of the plotted points on the
chart the lesser is the relationship between the two
variables
The more closely the points come to the straight line
higher the degree of relationship.
2 KINDS OF LINEAR CORRELATION:
If all the points lie on a straight line falling from the
lower left hand corner to the upper right hand corner
the correlation is said to be perfectly positive(r=1)
If all the points are lying on a straight line rising from
the upper left hand corner to the lower right hand
corner of the diagram correlation is said to be perfectly
negative.
 50,000

45,000

40,000

35,000

30,000

Axis Title 25,000

BANK SAVINGS
Linear (BANK SAVINGS)
20,000

15,000

10,000

5,000

0
Nov-14 Dec-14 Feb-15 Apr-15 May-15 Jul-15 Sep-15

Axis Title
 50,000

45,000

40,000

35,000

30,000

Axis Title 25,000

BANK SAVINGS
Linear (BANK SAVINGS)
20,000

15,000

10,000

5,000

0
Nov-14 Dec-14 Feb-15 Apr-15 May-15 Jul-15 Sep-15

Axis Title
SAMPLE DATA:
AGE (X) GLUCOSE LEVEL (Y)mg/dL
24 80
26 85
30 89
35 94
45 105
49 110
55 117
69 121
75 127
83 133
 140

120

100
GLUCOSE LEVEL

80

GLUCOSE LEVEL
60 Linear (GLUCOSE LEVEL)

40

20

0
20 30 40 50 60 70 80 90
AGE
AGE (X) TESTOSTERONE LEVEL (Y) ng/dL
24 784
26 755
30 739
35 711
45 620
49 573
55 559
69 530
75 509
83 487
 900

800

700
TESTOSTERONE LEVEL

600

500

400 TESTOSTERONE LEVEL

Linear (TESTOSTERONE LEVEL)

300

200

100

0
20 30 40 50 60 70 80 90
AGE
EXERCISE:

AGE (X) CREATININE LEVEL (Y) umol/L

21 65
25 79
42 75
43 99
57 87
59 81
 120

100

80
CREATININE LEVEL

60
CREATININE LEVEL
Linear (CREATININE LEVEL)

40

20

0
15 20 25 30 35 40 45 50 55 60 65
AGE
BY USING PEARSON CORRELATION COEFFICIENT,
ASSESS THE LINEAR CORRELATION OF THE
GIVEN DATA
SOLUTION:
AGE (X) CREATININE LEVEL (Y) XY X2 Y2
21 65 1365
25 79 1975
42 75 3150
43 99 4257
57 87 4959
59 81 4779
AGE (X) CREATININE LEVEL (Y) XY X2 Y2
21 65 1365 441
25 79 1975 625
42 75 3150 1764
43 99 4257 1849
57 87 4959 3249
59 81 4779 3481
AGE (X) CREATININE LEVEL (Y) XY X2 Y2
21 65 1365 441 4225
25 79 1975 625 6241
42 75 3150 1764 5625
43 99 4257 1849 9801
57 87 4959 3249 7569
59 81 4779 3481 6561
AGE (X) CREATININE LEVEL (Y) XY X2 Y2
21 65 1365 441 4225
25 79 1975 625 6241
42 75 3150 1764 5625
43 99 4257 1849 9801
57 87 4959 3249 7569
59 81 4779 3481 6561
247 486 20485 11409 40022
r= 0.5298
OUR RESULT IS 0.5298 WHICH MEANS THE
VARIABLES ARE MODERATELY LINEARLY
CORRELATED.
MERITS AND LIMITATIONS
MERITS
IT IS A SIMPLE AND NON MATHEMATICAL
METHOD OF STUDYING CORRELATION BETWEEN
VARIABLES.
AS SUCH IT CAN BE EASILY UNDERSTOOD AND A
ROUGH IDEA CAN VERY QUICKLY BE FORMED AS
TO WHETHER OR THE VARIABLES ARE RELATED.
IT IS THE FIRST STEP IN INVESTIGATING
RELATIONSHIP BETWEEN 2 VARIABLES.
LIMITATIONS:
BY APPLYING THIS METHOD WE CAN GET AN
IDEA ABOUT THE DIRECTION OF CORRELATION
AND ALSO WHETHER IT IS HIGH OR LOW
BUT WE CANNOT ESTABLISH THE EXACT DEGREE
OF CORRELATION BETWEEN THE VARIABLES AS
IS POSSIBLE BY APPLYING THE MATHEMATICAL
METHODS.
WEIGHTED MEAN
IS DEFINED FOR A SET OF VALUES AND NON-
NEGATIVE ASSOCIATED WEIGHTS AS THE SUM OF
ALL VALUES TIMES THEIR ASSOCIATED WEIGHTS
DIVIDED BY THE SUM OF THE WEIGHTS.
USED WHEN THE RELATIVE IMPORTANCE OF THE
ITEMS IN A SERIES IS NOT SAME FOR ALL ITEMS.
EACH ITEM IS JUDGED BASED ON ITS RELATIVE
IMPORTANCE
ADEQUATELY REPRESENTS THE DISPERSION OF
VALUES WHERE THE FREQUENCY OF THE VALUES IS
DIFFERENT.
WEIGHTED AVERAGE METHOD
Method to average data, sometimes a collection of
values will vary significantly in their distribution. In
such case, instead of simple average method more
adequately represents the average, weighted dispersion
of values where the frequency of the values is different.
FORMULA:
ARITHMETIC MEAN VS. WEIGHTED MEAN
SAMPLE DATA:
FIND THE AVERAGE WEIGHT

TYPE OF CAR (X) NUMBER OF CARS (W)

STAREX : 4,000 lbs. 3
ADVENTURE : 3,000 lbs. 7
EVEREST: 5,000 lbs. 2
ARITHMETIC MEAN

= 4,000 lbs.
 4,000 lbs
5,000 lbs 3,000 lbs
WEIGHTED MEAN

TYPE OF CAR (X) NUMBER OF WX

CARS (W)
STAREX : 4,000 lbs. 3 12,000
ADVENTURE : 7 21,000
3,000 lbs.
EVEREST: 5,000 2 10,000
lbs.
∑ 12 43,000
= 3,583.33 lbs.
 3,000 lbs
5,000 lbs 4,000 lbs

3,583.33 lbs
SAMPLE DATA 1:
PEDRO WANTS TO BUY A CAMERA, AND DECIDES
ON THE FOLLOWING CRITERIA:
 IMAGE QUALITY: 50%
 BATTERY LIFE: 30%
 ZOOM RANGE: 20%
 CRITERIA SONY CANON

IMAGE QUALITY 8 9

BATTERY LIFE 6 4

ZOOM RANGE 7 6
 CRITERIA RATING (W) SONY CANON

IMAGE QUALITY 50% OR 0.5 8 9

BATTERY LIFE 30% OR 0.3 6 4

ZOOM RANGE 20% OR 0.2 7 6

CRITERIA RATING SONY(X) CANON(X) WX WX
(W) (SONY) (CANON)

IMAGE 50% OR 0.5 8 9 4 4.5

QUALITY

BATTERY 30% OR 0.3 6 4 1.8 1.2

LIFE

ZOOM 20% OR 0.2 7 6 1.4 1.2

RANGE

∑ 7.2 6.9

PEDRO DECIDES TO BUY SONY

SAMPLE DATA 2:
JOHN RECENTLY TOOK THE MEDICAL
TECHNOLOGY BOARD EXAM. GIVEN IS HIS
RATINGS TO THE BOARD SUBJECTS WITH THEIR
CORRESPONDING WEIGHTS. FIND JOHN’S
GENERAL WEIGHTED AVERAGE
SUBJECTS RELATIVE WEIGHT RATINGS
CLINICAL CHEMISTRY 20 78
MICROBIOLOGY AND
PARASITOLOGY 20 79
HEMATOLOGY 20 76
BLOOD BANKING AND
SEROLOGY 20 83
CLINICAL MICROSCOPY 10 77
HISTOPATHOLOGY 10 77
SUBJECTS RELATIVE RATINGS (X) WX
WEIGHT(W)
CLINICAL CHEMISTRY 20 78 1,560
MICROBIOLOGY AND
20 79 1,580
PARASITOLOGY
HEMATOLOGY 20 76 1,520
BLOOD BANKING AND
20 83 1,660
SEROLOGY
CLINICAL MICROSCOPY 10 77 770
HISTOPATHOLOGY 10 77 770
SUBJECTS RELATIVE RATINGS (X) WX
WEIGHT(W)
CLINICAL CHEMISTRY 20 78 1,560
MICROBIOLOGY AND
20 79 1,580
PARASITOLOGY
HEMATOLOGY 20 76 1,520
BLOOD BANKING AND
20 83 1,660
SEROLOGY
CLINICAL MICROSCOPY 10 77 770
HISTOPATHOLOGY 10 77 770
∑ 100 7,860
EXERCISE:
Out of 30 contestants, Jeremy and Jhannus reached the
Finals of MBA GOT TALENT. After their performances,
they got the following ratings from the panel of Judges:
CRITERIA PERCENTAGE JEREMY JHANNUS
PERFORMANCE 40% 79 82
AUDIENCE 30% 80 75
IMPACT
STAGE 10% 75 75
APPEARANCE
ORIGINALITY 10% 72 77
PERSONALITY 10% 72 74
CRITERIA PERCENTAGE JEREMY JHANNUS
PERFORMANCE 40% OR 0.4 79 82
AUDIENCE 30% OR 0.3 80 75
IMPACT
STAGE 10% OR 0.1 75 75
APPEARANCE
ORIGINALITY 10% OR 0.1 72 77
PERSONALITY 10% OR 0.1 74 74
 CRITERIA PERCENTAGE JEREMY(X) JHANNUS(X) WX WX
(W) (JEREMY) (JHANNUS)

PERFORMANCE 40% OR 0.4 79 82 31.6 32.8

AUDIENCE 30% OR 0.3 80 75 24 22.5

IMPACT

STAGE 10% OR 0.1 75 75 7.5 7.5

APPEARANCE

ORIGINALITY 10% OR 0.1 72 77 7.2 7.7

PERSONALITY 10% OR 0.1 74 74 7.4 7.4

 CRITERIA PERCENTAGE JEREMY(X) JHANNUS(X) WX WX
(W) (JEREMY) (JHANNUS)

PERFORMANCE 40% OR 0.4 79 82 31.6 32.8

AUDIENCE 30% OR 0.3 80 75 24 22.5

IMPACT

STAGE 10% OR 0.1 75 75 7.5 7.5

APPEARANCE

ORIGINALITY 10% OR 0.1 72 77 7.2 7.7

PERSONALITY 10% OR 0.1 74 74 7.4 7.4

∑ 77.7 77.9

JHANNUS WINS MBA GOT TALENT!!!!