CORRELATION

OBJECTIVES
At the end of the session, students must be able to:
1. Define correlation
2. Identify the 5 types of correlation
3. Enumerate different kinds of method and formulas.
4. Solve problems involving correlation

CORRELATION
Correlation is a measure of degree of relationship between paired data or two
variables. In all statistical researchers that aim to establish relationship between paired
variables, correlation is being measured to enable them to predict how one variable
behave based on the other.
5 Types of Correlation

Perfect Positive Correlation

Perfect Negative Correlation

Some Positive Correlation

Some Negative Correlation

No Correlation

Correlation can have a value:

The value shows how good

the correlation is (not how
0 is no correlation (the values don't seem linked at
all) the line is), and if it is
steep
positive or negative.
-1 is a perfect negative correlation
1 is a perfect positive correlation

To determine the extent of correlation between paired variable, the following table is used:

0.00 to

Negligible Correlation

0.20
0.21 to

Low Correlation

0.40
0.41 to

Substantial Correlation >

0.50
0.51 to

Moderate
Marked Correlation > High

0.80
0.81 to

Very High Correlation

1.00

MEASURES OF CORRELATION

The Spearman Rank Order Method

The Pearson-Product Moment Method

THE SPEARMAN RANK ORDER CORRELATION COEFFICIENT (rho)

This is the most commonly used method in determining the correlation coefficient
for ranked data. It is suited for statistical problem solving 30 cases or less.
Formula:
p

6 D2
n ( n21 )

where:
p = rank order correlation coefficient
1 = a constant
6 = a constant
D = sum of square of the difference between ranks
n = number of cases

EXAMPLE 1
Ordinary symptoms of viral infection are fever ranging from 40 and above and a
lowering of the platelet count. In the pediatric ward, 10 pediatric patients admitted at the
same day because of unexplained fever. Data regarding temperature and blood platelet
count were gathered randomly.

To compute for rho, prepare a similar table:

APPLYING THE SPEARMAN FORMULA

FORMULA:
p

6 D2
n ( n21 )

GIVEN:
D= 322.5
n = 10
SOLUTION:
p

6(322.5)
10(1021)

p = 1 1.9545
p = -0.9545
Conclusion: Very high negative correlation

THE PEARSON-PRODUCT MOMENT CORRELATION COEFFICIENT (r)

Another formula used in determining correlation coefficient is the Pearson r. This is
most applicable to cases exceeding 30. This can also be used for regression test and
analysis.
Where:
Formula:
r

r = pearson r correlation coefficient

N ( xy )( x ) ( y )

[ N ( x ) ( x ) ][ N ( y ) ( y ) ]
2

N = number of cases
xy = sum of products of paired
x = sum of x scores
y = sum of y scores
x= sum of squared x scores
y = sum of squared y scores
5

Using the same data:

APPLYING THE PEARSON FORMULA:

N ( xy )( x ) ( y )

[ N ( x ) ( x ) ][ N ( y ) ( y ) ]
2

10 ( 43895.6 )( 402.2 ) (1096)

[ 10 ( 16190.68 )(402.2) ][ 10 ( 122806 )(1096) ]

-0.9503

Conclusion: very high negative correlation

EXAMPLE 2
The local ice cream shop keeps track of how much ice cream they sell versus the
temperature on that day; here are their figures for the last 12 days:

Scatter Plot Data:

Solution:

Step 1: Find the mean of x and the mean of y.

Step 2: Subtract the mean of x from every value (call them a), and do the same
for y (call them b)

Step 3: Calculate: a b, a2 and b2 for every value

Step 4: Find the summation of a b. Find the summation of a2. Find the summation
of b2

Step 5: Divide the sum of a b by the square root of [(sum of a2) (sum of b2)]