Scribd
Upload
29 views26 pages

Lecture No 04 - Stats - 3!5!24

Uploaded by

Heer Abbasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
29 views26 pages

Lecture No 04 - Stats - 3!5!24

Uploaded by

Heer Abbasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

Lecture No 04

Course Title: Statistics


Course Code: MIC 2251
Lecture Content
Correlation
Types of Correlation
Karl Pearson’s Coefficient of Correlation
Spearman’s Rank Correlation.
Correlation
•Correlation is a statistical tool desired towards measuring the degree of
the relationship (degree of association) between variables.
•If the change in one variable affects the change in the other variable,
then the variables are correlated.
•Correlation indicates the relationship between two or more variables.
•It is concerned with finding:
•Whether or not the relationship exist?
•Degree of the correlation?
•Direction of relationship within the variables (Direct or indirect)?
•Relationship is strong or Weak?
Examples
Relationship between income and years of experience
Relationship between amount of rainfall and yield of rice
Relationship between price and demand of a commodity
Relationship between nature of work and motivation to work
Relationship between height and weigh
Types of Correlation
Correlation on the basis of direction of change is as following:
(1) Positive Correlation
(2) Negative Correlation
(3) Perfectly Positive Correlation
(4) Perfectly Negative Correlation
(5) Zero Correlation
Positive Correlation
•When two variables move in the same direction then the correlation
between these two variables is said to be Positive Correlation.
•When the value of one variable increases, the value of other value also
increases at the same rate.
For example :
Training( Rs.) : 350 360 370 380
performance( Kg.) : 30 40 50 6
Negative Correlation
•In this type of correlation, the two variables move in the opposite
direction.
•When the value of one variable increases, the value of the other
variable decreases.
•For example, the relationship between price and demand.
Perfect Positive Correlation
When there is a change in one variable X, and if there is equal
proportion of change in the other variable say Y in the same
direction, then these two variables are said to have a Perfect
Positive Correlation.
Perfectly Negative
Correlation
Between two variables X and Y, if the change in X causes the
same amount of change in Y in equal proportion but in
opposite direction, then this correlation is called as
Perfectly Negative Correlation.
Zero Correlation
When the two variables are independent and the change in
one variable has no effect in other variable, then the
correlation between these two variable is known as Zero
Correlation.
Coefficient of Correlation
A coefficient of correlation is generally applied in statistics to
calculate a relationship between two variables.

The correlation shows a specific value of the degree of a linear


relationship between the X and Y variables, say X and Y.

There are various types of correlation coefficients.


A. Karl Pearson’s Coefficient of Correlation- linear relationship
B. Spearman’s Rank Correlation- monotonic relationship
Assumptions of Pearson's r
The Pearson’s product-moment correlation coefficient, also known
as Pearson’s r, describes the linear relationship between two
quantitative variables.
These are the assumptions your data must meet if you want to use
Pearson’s r:
1. Both variables are on an interval or ratio level of measurement
2. Data from both variables follow normal distributions
3. Your data have no outliers
4. Your data is from a random or representative sample
5. You expect a linear relationship between the two variables
Spearman's rho (ρ)
Spearman’s rho, or Spearman’s rank correlation coefficient, is
the most common alternative to Pearson’s r.

It’s a rank correlation coefficient because it uses the rankings of


data from each variable (e.g., from lowest to highest) rather
than the raw data itself.

You should use Spearman’s rho when your data fail to meet
the assumptions of Pearson’s r.
Linear vs monotonic relationship
In a linear relationship, each variable changes in one direction at the
same rate throughout the data range.

In a monotonic relationship, each variable also always changes in


only one direction but not necessarily at the same rate.​

• Positive monotonic: when one variable increases, the other also


increases.​

• Negative monotonic: when one variable increases, the


other decreases.​
Pearson vs Spearman
Correlation Coefficients
A. Pearson’s Coefficient
Correlation
• Karl Pearson’s coefficient of correlation is defined as a linear
correlation coefficient that falls in the value range of -1 to +1.

• Value of -1 signifies strong negative correlation while +1


indicates strong positive correlation.

• The coefficient of correlation is expressed by “r”.


A. Pearson’s Correlation
Coefficient
• The coefficient of correlation is expressed by “r”.
B. Spearman’s Rank
Correlation
• Spearman’s Rank Correlation is a statistical measure of the
strength and direction of the monotonic relationship
between two continuous variables.
B. Spearman’s Rank Correlation
To use this formula, you’ll first rank the data from each
variable separately from low to high: every datapoint gets a rank
from first, second, or third, etc.
B. Spearman’s
Rank Correlation

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy