Examples of positive correlation are:
Examples of negative correlation are:
Methods of estimating correlation:
A scatter plot provides a visual representation of the strength and direction of correlation between two variables. It involves plotting the x variable on the X-axis and the y variable on the Y-axis, resulting in a cluster of points called a scatter plot. The proximity and overall direction of the scatter points help us to analyze the relationship between the two variables.
Karl person’s coefficient of correlation is a quantitative method of calculating correlation. It gives a precise numerical value of the degree of linear relationship between two variables.
Karl person’s coefficient of correlation is also known as product-moment correlation.
Formula:
Here,
r = Coefficient of correlation
σx = Standard deviation of X-series.
σy = Standard deviation of Y-series.
N = Number of observations
Spearman's rank correlation coefficient is a useful tool for determining the correlation between variables that may not have a clear or objective measurement. It is particularly helpful when analyzing the correlation of qualitative variables.
Here,
rs = coefficient of rank correlation
D = Rank differences
N = Number of rank
When ranks are repeated the formula is:
Where m1, m2, .............. are number of repetitions of ranks.
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