CORRELATION

AND
REGRESSION

R. TAVARES, RME-PLM85
Regression Analysis - the method by which
estimates or predictions are made from bivariate
data.

Correlation Analysis a descriptive statistical

method of measuring the strength of association
(relationship) between two variables.

Univariate data - the frequency or probability of a

single variable.

Bivariate data - the value of two variables for each

observation
Independent or explanatory variable when
one variable is controlled or is used to explain
another variable.
Scatter Diagram(Scatter Plot) - used to visualize
bivariate data.

Illustrative Sample:
The table shows the hours of sunshine and concert
attendance
Hours for different events.
Concert
of Attendan
Sunshi ce (x
ne 100)
X Y
1.9 22
2.5 33
3.2 30
3.8 42
4.7 38
5.5 49
5.9 42
7.2 55
 PEARSONS CORRELATION
Relation Interpretation

Pearson Interpretation
Rank, r
0.00 No correlation
Perfect correlation
1- Very low correlation
- Moderately low
correlation
1- High correlation
-99 Very high correlation
CORRELATION BETWEEN INTERVAL
VARIABLES
Pearson Product-Moment Correlation Coefficient

where: N = number of paired observations

x = first variable
y = second variable
 Illustrative Sample
The table shows the hours of sunshine and concert
attendance for different events. Determine if the
number of hours of sunshine is relevant to the
number of concert attendees.
r = 0.916 very high correlation
 Correlation Between Ordinal
Variables
Spearman Rank Order Correlation Coefficient

where: D2= difference between subject ranks on

the two variables
N = number of paired observations
 Illustrative Sample
The table shows wine ranking in a wine tasting
event. Interpret the data using the Spearman rank
order correlation.
Wine 1 2 3 4 5 6 7 8 9
Judge
A 7 1 3 2 8 5 9 6 4
Judge
B 9 4 1 3 7 5 6 8 2
r = 0.7 high correlation
 Regression Method
Linear regression is a prediction equation or
regression equation referring to the straight-line
relation between the variables X and Y, such that a
change in X will cause a corresponding change in Y
or vice versa. The relation is positive if an increase in
X causes an increase in Y. However, if an increase in
X causes a decrease in Y, the relationship is said to
be negative.

One use of linear regression is predicting first-

semester scores of students based on the result of
the entrance examinations. Schools make use of this
Regression Equations
(1)Straight-line Relation:

where: = predicted value of Y (not the same as
the value of Y more like )
(2) (a) To predict Y from X: and

where: a and b = coefficients

(b) To predict X from Y: and

 Regression Method
(1)The Standard Error of Estimate
The equation takes into consideration the errors of measurement, except,
for perfect relationships.

(2)The Coefficient of Determination

Three sources of variation:
(a) the total variation of all the Y scores, represented by SS y or y2

(b) the variation associated with the errors of prediction

(c) the variance of the estimated Y values from their own

( - ) 2
= y
2 2
 Regression Method

(5)Standard Error of Estimate Using A Correlation

Coefficient

Correction
 Mathemati Mathemati
Illustrative cs Test
120
cs Grade
90
Sample
Illustrative 112 78
87 61
Sample: 42 28
A small college 56 48
is doing research 99 71
in its entrance 22 18
50 55
testing. A
73 81
mathematics 11 18
achievement 63 50
test is given as 132 96
part of the 85 81
93 78
entrance battery. 47 45
Scores on this 77 63
test and 61 42
mathematics 88 73
47 21
grades are given
75 52
below for 20
freshmen.