Page 1 - Home assignment-correlation analysis.
P. 1
SAI INTERNATIONAL SCHOOL
Statistics for Economics
Class-XI
CHAPTER - 11
Correlation analysis
(Module-64 )
Calculation of Karl Pearson’s Coefficient of Correlation
Direct Method
Short Cut Method
Step Deviation Method
Direct method of measuring coefficient of correlation: -
When data size is small and is in fraction then we apply the direct
method based on the data to easily calculate coefficient of correlation.
− .
=
2
2
2
− ( ) − ( ) 2
Example-2: - From the following data calculate coefficient of correlation.
X 1 2 3 4 5 6
Y 18 16 14 12 10 08
Solution:- Calculation of coefficient of correlation.
2
2
X Y ×
1 18 1 324 18
2 16 4 256 32
3 14 9 196 42
