Page 2 - Home assignment-correlation analysis.
P. 2

4              12              16                 144                   48

                     5              10              25                 100                   50
                     6              08              36                  64                   48
                      =21            =78            2                  2                       =238
                                                   = 91               = 1084



                                                                    −      .     
                                               =
                                                       2
                                                                           2
                                                                   2
                                                       − (    )       − (    )        2
                                                                 6×238−21×78
                                                       =
                                                                      2
                                                             6×91−21  6×1084−78    2
                                                                  1428−1638
                                                       =
                                                             546−441 6504−6084
                                                              −210       −210
                                                       =              =       = −1
                                                             105×420      210
                              There exists a perfect negative correlation between x and y.


               Short cut method to measure coefficient of correlation: -




                       When data size is large and             is in fraction then we apply the short-
                       cut method to easily calculate coefficient of correlation.

                                                                   −              
                                                                            
                                                                   
                                            =
                                                                   2
                                                                             2
                                                      2
                                                       − (     )          − (     )      2
                                                                                         
                                                                  
                                                                               
                                                        
               Example-3: - Calculate the coefficient of correlation between the ages of husband
               and the ages of wives.
                 Age of husband          24         25          22         30         34         37
                   Age of wife           20         21          18         26         28         30
                       Solution: - Calculation of coefficient of correlation


                              Let the age of husband be x and wife be y

                                                                         2
                                                                                       2
                   X           Y                                                                     ×   
                                                                                                            
                                                                                                      
                                                                                         
                                                            
                                              
                                                                           
                   24         20           -6            -6            36             36             36
                   25         21           -5            -5            25             25             25
                   22         18           -8            -8            64             64             64
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