Scribd Logo
Upload

Welcome to Scribd!

  • 47 views

    Correlation Lecture Notes

    Uploaded by

    clint xavier odango
    There is a high positive correlation between sales and advertising expenses based on the data from 10 stores. Stores with higher advertising expenses tended to have higher sales. There is a moderate negative correlation between the rankings of two judges of tourist destinations. One judge's high ranks corresponded to the other judge's low ranks. Using data from ratings of projects by 5 judges, there is a high level of agreement among the judges' rankings as shown by the concordance coefficient close to 1. The entrance exam scores have a positive moderate correlation with interview results, with higher exam scores associated with passing the interview.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Correlation Lecture Notes

    Uploaded by

    clint xavier odango
    47 views7 pages
    There is a high positive correlation between sales and advertising expenses based on the data from 10 stores. Stores with higher advertising expenses tended to have higher sales. There is a moderate negative correlation between the rankings of two judges of tourist destinations. One judge's high ranks corresponded to the other judge's low ranks. Using data from ratings of projects by 5 judges, there is a high level of agreement among the judges' rankings as shown by the concordance coefficient close to 1. The entrance exam scores have a positive moderate correlation with interview results, with higher exam scores associated with passing the interview.

    Original Title

    Correlation lecture notes

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    There is a high positive correlation between sales and advertising expenses based on the data from 10 stores. Stores with higher advertising expenses tended to have higher sales. There is a moderate negative correlation between the rankings of two judges of tourist destinations. One judge's high ranks corresponded to the other judge's low ranks. Using data from ratings of projects by 5 judges, there is a high level of agreement among the judges' rankings as shown by the concordance coefficient close to 1. The entrance exam scores have a positive moderate correlation with interview results, with higher exam scores associated with passing the interview.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views7 pages

    Correlation Lecture Notes

    Uploaded by

    clint xavier odango
    There is a high positive correlation between sales and advertising expenses based on the data from 10 stores. Stores with higher advertising expenses tended to have higher sales. There is a moderate negative correlation between the rankings of two judges of tourist destinations. One judge's high ranks corresponded to the other judge's low ranks. Using data from ratings of projects by 5 judges, there is a high level of agreement among the judges' rankings as shown by the concordance coefficient close to 1. The entrance exam scores have a positive moderate correlation with interview results, with higher exam scores associated with passing the interview.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 7

    Correlation/ Relationship/Association between Sales and Advertising expense

    Stores Sales [x P1000] Ad Expense [x P1000] XY X2 Y2


    (X) (Y)

    A 100 25 2500 10000 625


    B 150 35 5250 22500 1225
    C 200 75 15000 40000 5625
    D 158 65 10270 24964 4225
    E 50 40 2000 2500 1600
    F 75 65 4875 5625 4225
    G 120 60 7200 14400 3600
    H 130 65 8450 16900 4225
    I 110 50 5500 12100 2500
    J 500 130 65000 250000 16900
    total ΣX =1593 ΣY =610 ΣXY = 126045 ΣX2 =398989 ΣY2 = 44750

    ∑ ∑ ∑
    r= = = = +0.87
    √[ ∑ ∑ ][ ∑ ∑ ] √[ ][ ] √

    Interpretation: There exists a positive high correlation between sales and advertising expense. High sales are associated with high advertising
    expense.

    1
    Spearman Rho

    =correlation between two sets of ranks

    Ρ=1- =1- =1 - = - 0.43

    Tourist Destinations Rx (Philbert) Ry (Sotomango) D2= (Rx –Ry)2


    Siargao 6 3 (6-3)2 = 9
    Bohol 2 6 16
    Baguio 1 5 16
    Palawan 5 4 1
    Boracay 4 2 4
    Batanes 3 1 4
    2
    ΣD = 50

    There exists a negative moderate correlation between the rankings of Philbert and Karyll of the Tourists destinations. Philbert’s high ranks are
    associated with Karyll’s low ranks.

    2
    Kendall’s Coefficient of Concordance

    -to determine the relationship among three or more sets of ranks.


    -value ranges from 0 to 1; 0 has no agreement while 1 means a perfect agreement. The nearer the value to 1 the stronger is the agreement.

    ∑
    W= total sum of ranks = average rank = = = 27.5

    Sum of
    JUDGES D2
    Projects Ranks
    VIOLA RIZZA MARIAN XYLI ZIAN
    A 2 1 2 3 4 12 (12-27.5)2=240.25
    B 1 3 1 2 2 9 342.25
    C 3 4 4 1 3 15 156.25
    D 5 5 5 5 1 21 42.25
    E 4 2 6 7 6 25 6.25
    F 7 8 3 4 7 29 2.25
    G 6 6 8 6 5 31 12.25
    H 8 7 7 8 9 39 132.25
    I 9 10 10 9 8 46 342.25
    j 10 9 9 10 10 48 420.25
    2
    Σsum of ΣD = 1696.50
    ranks= 275

    total sum of ranks = = = 275 m=how many sets of ranks are there ; n = number of objects being rated

    ∑
    W= = = 0.82

    There exists high correlation among the rankings of the five judges.

    3
    Point Biserial Coefficient

    -determine relationship between a dichotomous (nominal) and continuous (interval or ratio) variable.

    ∑ ∑ ∑ ∑
    rpb =
    √∑ ∑ [∑ ∑ ∑ ]

    we assign the fp column for the positive response counts in the nominal variable; f w for the negative response counts in the nominal,; Y column
    for the responses (scores) in the continuous variable.

    Sample. Determine correlation between the results of the interview (pass or fail) and the entrance exams of the applicants.

    Entrance Exam fp (# of applicants fw (# of applicants


    f (fp +fw) fY fY2 fpY
    Scores (Y) who passed) who failed)
    10 2 0 2 20 200 20
    9 4 0 4 36 324 36
    8 6 1 7 56 448 48
    7 7 1 8 56 392 49
    6 8 2 10 60 360 48
    5 6 4 10 50 250 30
    4 5 6 11 44 176 20
    3 3 8 11 33 99 9
    2 2 7 9 18 36 4
    1 1 8 9 9 9 1
    0 0 9 9 0 0 0
    Σfp =44 Σfw =46 Σf =90 ΣfY = 382 ΣfY2 = 2294 Σfp Y=265

    ∑ ∑ ∑ ∑
    rpb = = = = 0.64
    √ [ ]
    √∑ ∑ [∑ ∑ ∑ ]

    4
    There exists a positive moderate correlation between entrance test scores and the interview results of the applicants. High scores in
    the entrance exam are associated with passing results in the interview.

    Partial correlation

    -determining the relationship between two variables holding constant (eliminating) the influence of a third variable.

    The general formula (correlation between variables 1 and 2 with the effects of variable 3 partialed out).

    r12.3 =
    √

    Correlation between variables 2 and 3 with the effects of variable 1 partialed out

    r23.1 =
    √

    Correlation between variables 1 and 3 with the effects of variable 2 partialed out

    r13.2 =
    √

    Note: r12 = r21 ; r23=r32; r13 = r31

    Sample. Suppose

    1 = age; 2 = weight 3 =scores in the math test and

    r12 = 0.80 r13 = 0.60 r23 =0.50

    What is the correlation between weight (2) and scores(3) with the effects of age(1) removed?

    5
    r23.1 = = r23.1 = = = 0.04
    √ √

    There exists positive yet negligible correlation between weight and scores with the effects/influence of age removed (partialed
    out).

    Multiple Correlation

    -to get the correlation between one variable and the combined effects of two or more other variables.

    -can give only the strength of the association.

    Formula for the correlation between variable 1 and the combined effects of variables 2 and 3

    R1.23 = √

    Correlation between variable 3 and the combined effects of variables 1 and 2

    R3.12 == √

    Correlation between variable 2 and the combined effects of variables 1 and 3

    R2.13 == √

    6
    Suppose: 1 = age; 2 = weight 3 =scores in the math test and

    r12 = 0.80 r13 = 0.60 r23 =0.50

    What is the correlation between age(1) and the combined effect of weight(2) and scores(3)?

    R1.23 = √ = √ =√ = 0.83

    There exists a high correlation between age and the combined effects of weight and scores.

    You might also like