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Dr. T. T. Kachwala
1
What is Correlation Analysis?
2
Classification and Methods of Measuring Correlation
Classification of Correlation
1. Positive and Negative correlation
2. Simple and Multiple correlation
3. Linear and Non-linear correlation
3
Karl Pearson’s Correlation Coefficient
Ungrouped Data
xy
r
x 2 y 2
X Y
X Y
n n
The value of ‘r’ lies between -1 & +1
Karl Pearson’s Correlation Coefficient
Grouped Data
fxy
r
fx 2 fy 2
fm fm
X Y (for a continuous series)
f f
5
Spearman’s Rank Correlation Coefficient
6D 2
rs 1
N (N 2 - 1)
6
What is Regression Analysis?
Ŷi β̂1 β̂ 2 X i
Where
The following are the formulas for the estimators; β̂1 and β̂ 2
x i yi
β̂ 2
x i2
β̂1 Y - β̂ 2 X
Where x i Xi - X
y i Yi - Y