Calculating Pearson’s Sample

Correlation Coefficient
Correlation of coefficent
-is used as the comparative measure of association. The coefficient of
correlation will have the limits zero to 1.00.
Interpretation of r
• 0- (+-) 0.20- no correlation
• (+-) 0.21-(+-) 0.40- weak positive correlation
• (+-) 0.41-(+-) 0.70-Moderate correlation
• (+-) 0.71-(+-) 0.90-Strong correlation
• (+-) 0.91-(+-) 1.00-Perfect correlation
 Estimate the variation (strength) of
correlation of the following scatter plots
 A statistics professor at a state university wants to see how strong the
relationship is between a student’s score on a test and his or her grade point
average. The data obtained from the sample follow.
The correlation coefficient suggests a
strong positive relationship between
the test score and the grade point
average.
The JC Company decided to examine relationship between the
number of calls made and the number of sales made by 12 of their
sales agents: Sales Agent Number of Calls(X) Weekly Sales(y)

1 24 10
2 33 12
3 29 15
4 17 8
5 25 14
6 10 2
7 12 5
8 16 10
9 28 18
10 15 12
11 14 11
12 10 5
R supermarket wanted to know whether a linear relationship exists between
daily take home pay and daily food expenditures. A random sample of 10
households produced the data shown in the following table.
Sales Agent Number of Calls(X) Weekly Sales(y)
a. Graph the
1 400 250
scatter
2 280 200
diagram
3 300 180
b. Calculate
4 250 200
the
5 180 150
coeffiecient
of
6 360 280
correlation
7 225 170
8 340 200
9 270 220
10 350 320