PPT - Karl Pearson's Coefficient of Correlation B Com Notes | EduRev

Business Mathematics and Statistics

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B Com : PPT - Karl Pearson's Coefficient of Correlation B Com Notes | EduRev

 Page 2


CORRELATION – KARL PEARSON’S 
COEFFICIENT OF CORRELATION-
INTERPRETATION OF CORRELATION 
COEFFICIENT
Page 3


CORRELATION – KARL PEARSON’S 
COEFFICIENT OF CORRELATION-
INTERPRETATION OF CORRELATION 
COEFFICIENT
MEANING OF CORRELATION
• The method of correlation is developed by     
Francis Galton in 1885.
• It is the relationship between two sets of scores 
or variables.
• Whenever two variables of the same group are so 
related that the increase or decrease are 
correspond to the increase or decrease to 
another or conversely , increase or decrease 
corresponds to the decrease or increase to 
another ,they are said to be correlated.
Page 4


CORRELATION – KARL PEARSON’S 
COEFFICIENT OF CORRELATION-
INTERPRETATION OF CORRELATION 
COEFFICIENT
MEANING OF CORRELATION
• The method of correlation is developed by     
Francis Galton in 1885.
• It is the relationship between two sets of scores 
or variables.
• Whenever two variables of the same group are so 
related that the increase or decrease are 
correspond to the increase or decrease to 
another or conversely , increase or decrease 
corresponds to the decrease or increase to 
another ,they are said to be correlated.
TYPES OF CORRELATION
On the basis of direction of the relation 
between variables, there are three types of 
correlation. That are , 
1. Positive Correlation
2. Negative Correlation
3. Zero Correlation 
Page 5


CORRELATION – KARL PEARSON’S 
COEFFICIENT OF CORRELATION-
INTERPRETATION OF CORRELATION 
COEFFICIENT
MEANING OF CORRELATION
• The method of correlation is developed by     
Francis Galton in 1885.
• It is the relationship between two sets of scores 
or variables.
• Whenever two variables of the same group are so 
related that the increase or decrease are 
correspond to the increase or decrease to 
another or conversely , increase or decrease 
corresponds to the decrease or increase to 
another ,they are said to be correlated.
TYPES OF CORRELATION
On the basis of direction of the relation 
between variables, there are three types of 
correlation. That are , 
1. Positive Correlation
2. Negative Correlation
3. Zero Correlation 
POSITIVE CORRELATION
If when the first variable increases or 
decreases the other also increases or 
decreases respectively their relationship is 
said to be Positive correlation , because they 
move in the same direction.
Eg. Intelligence and Achievement
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