Presentation on Correlation
By
B. Bommi Priya
Contents
• Correlation – Definition
• Correlation coefficient : Overview
• Positive and Negative Correlation
• Example with correlation coefficient calculation
Definition
• Correlation refers to a technique used to measure the
relationship between two or more variables.
• A Correlation coefficient is a statistical measure of the degree
to which changes to the value of one variable predict
change the value of another.
• A correlation can only indicate the presence or absence of a
relationship, not the nature of the relationship. Correlation is
not causation.
Correlation coefficient : Overview
• Correlation coefficient formula are used to find how strong a
relationship is between data. The formula a return a value
between -1 and 1, Where:
• 1 indicated a strong positive relationship
• -1 indicate a strong negative relationship
• A result of zero indicates no relationship at all
Examples showing positive and negative
Positive Correlation
• Association between
variables such that high
scores on one variable tend
to have high scores on the
other variable
• A direct relation between
the variables.
Negative Correlation
• Association between
variables such that high
scores on one variable tend
to have low scores on the
other variable.
• An inverse relation
between the variables.
Correlation Coefficient formula
• Pearson’s Correlation Coefficient
formula
Where,
• r = Correlation coefficient;
• ∑x = Sum of observation of variable x
• ∑y = Sum of observation of variable y
Example
SUBJECT AGE (X) GLUCOSE LEVEL (Y)
1 43 99
2 21 65
3 25 79
4 42 75
5 57 87
6 59 81
Example:
Step #1- Make a chart. Use the given data, and add
three more columns: xy, x2, and y2.
SUBJECT AGE (X) GLUCOSE LEVEL (Y) xy x2 y2
1 43 99
2 21 65
3 25 79
4 42 75
5 57 87
6 59 81
Example:
Step #2 -Multiply x and y together to fill the xy
column.
SUBJECT AGE (X) GLUCOSE LEVEL (Y) xy x2 y2
1 43 99 4257
2 21 65 1365
3 25 79 1975
4 42 75 3150
5 57 87 4959
6 59 81 4779
Example:
Step #3 – Take the Square of the numbers in the “x”
column and put the results in the x2 column
SUBJECT AGE (X) GLUCOSE LEVEL xy x2 y2
(Y)
1 43 99 4257 1849
2 21 65 1365 441
3 25 79 1975 625
4 42 75 3150 1764
5 57 87 4959 3249
6 59 81 4779 3481
Example:
Step #4 – Take the Square of the numbers in the “y”
column and put the results in the y2 column
SUBJECT AGE (X) GLUCOSE LEVEL (Y) xy x2 y2
1 43 99 4257 1849 9801
2 21 65 1365 441 4225
3 25 79 1975 625 6241
4 42 75 3150 1764 5625
5 57 87 4959 3249 7569
6 59 81 4779 3481 6561
Example:
Step #5 – Add up all of the numbers in the columns and
put the result at the bottom of the column. numbers in
the “y” column and put the results in the y2 column
SUBJECT AGE (X) GLUCOSE LEVEL (Y) xy x2 y2
1 43 99 4257 1849 9801
2 21 65 1365 441 4225
3 25 79 1975 625 6241
4 42 75 3150 1764 5625
5 57 87 4959 3249 7569
6 59 81 4779 3481 6561
Sum = ∑ ∑x = 247 ∑y= 486 ∑xy = 20485 ∑x2 = 11409 ∑y2=40022
Using the correlation coefficient formula
• correlation coefficient, r = 0.529809
• which means the variables have a moderate positive
correlation.
