Scribd
Upload
73 views

Subject: Business Mathematics Prof. Shruti Chandak

The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

Uploaded by

Neeraj Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
73 views

Subject: Business Mathematics Prof. Shruti Chandak

The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

Uploaded by

Neeraj Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 21

Subject : Business Mathematics

Prof. Shruti Chandak


 Correlation is the relationship that exists
between two or more variables.

 If variables are related to each other in such a


way that change in one creates a
corresponding change in other, then the
variables are said to be correlated.
 The relationship between heights and weights.

 The relationship between the quantum of rainfall


and yield of crop.

 The relationship between the price of commodity


and demand of commodity.
 Positive and Negative Correlation

 Linear and Non-linear Correlation

 Simple, Partial and Multiple Correlation


 If r = +1, then perfect Positive Correlation.

 If 0<r<+1, then Positive Correlation.

 If -1<r<0, then Negative Correlation.

 If r = -1, then perfect Negative Correlation.

 If r = 0, then no linear Correlation.


Methods of
correlation

Graphic Algebraic
Methods Methods

Scatter Diagram Simple graphic


Method Method

Karl Pearson’s Spearman’s Concurrent


Coefficient of Rank difference Deviation Others
correlation Method method
 P1. Calculate the coefficient of correlation for the
following data :--

X 9 8 7 6 5 4 3 2 1
Y 15 16 14 13 11 12 10 8 9
 P2. Calculate the Pearson’s coefficient of
correlation for the following data :--

Price (Rs)
22 24 26 28 30 32 34 36 38 40
Demand
(Tons) 60 58 58 50 48 48 48 42 36 32
 P3. Calculate the Pearson’s coefficient of
correlation for the following data :--
◦ Sum of deviations of x = 5
◦ Sum of deviations of y = 4
◦ Sum of square of deviations of x = 40
◦ Sum of square of deviations of y = 50
◦ Sum of the product of deviations of x and y = 32
◦ No. of pairs of observations = 10
 P4. Calculate the Pearson’s coefficient of
correlation for the following data :--

X 100 110 115 116 120 125 130 135

Y 18 18 17 16 16 15 13 10
 P5. Calculate the Pearson’s coefficient of
correlation for the following data :--

Marks in 20 35 15 40 10 35 30 25 45 30
statistics (X)
Marks in 25 30 20 35 20 25 25 35 35 30
Accounts (Y)
 P6. Calculate the Pearson’s coefficient of correlation
for the following data :--

X Y
series series
No. of observations 15 15

Arithmetic Mean 25 18

S.D 5 5

Ʃ (X – 25) (Y – 18) = 125


 P7. The total of the multiplication of deviation of
X and Y = 3044. No. of pairs of the observation is
10. Total of deviations of X=-170. Total of
deviations of y = -20. Total of the squares of
deviations of x = 8288. Total of the squares of
deviations of y = 2264. Find out the coefficient of
correlation when arbitrary means of x and y are
82 and 68 respectively.
 P8. Two teachers were asked to rank 7 students on
the basis of their singing competition. The ranks
given by them are given below :--
Student 1 2 3 4 5 6 7

Teacher 1 4 2 1 3 5 7 6

Teacher 2 1 3 2 4 5 6 7

Calculate the Spearman’s coefficient of correlation.


 P9. Two teachers were asked to rank 7 students on
the basis of their singing competition. The marks
assigned to these students out of maximum 50 are
given below :--
Student 1 2 3 4 5 6 7

Teacher 1 39 43 45 42 36 32 28

Teacher 2 46 41 44 40 38 36 32

Calculate the Spearman’s coefficient of correlation.


 P10. Calculate the coefficient of rank correlation
from the following data :--

X 48 33 40 9 16 16 65 24 16 57

y 13 13 24 6 15 4 20 9 6 19
 P11. Calculate the coefficient of rank correlation
from the following data :--

X 8 10 7 15 3 20 21 5 10 14 8 16 22 19 6

y 3 12 8 13 20 9 14 11 4 16 15 10 18 23 25
 P12. The coefficient of rank correlation of the
marks obtained by 10 students in two particular
subjects was found to be 0.5. It was later
discovered that the difference in ranks in two
subjects obtained by one of the student was
wrongly taken as 3 instead of 7. What should be
the correct value of coefficients of rank
correlation?

You might also like