DEPARTMENT OF TECHNICAL

EDUCATION ANDHRAPRADESH
Name : B.VIJAYA KUMAR
Designation : Lecturer
Branch : Commercial &computer practice
Institute : GPW / Guntur
Year/ Sem : II year Sem 4
Subject : Quantitative techniques
Sub-code : CCP-403
Topic : Correlation analysis
Duration : 50 Minutes
Sub- Topic : Karl Pearson’s Correlation problems-IV
Teaching Aids : PPT ANIMATION

CCP403.9 1
Objectives

On the Completion of this Period , you would be able

to:
 Calculate Karl Pearson’s Coefficient of Correlation
 Deviation from Assumed Mean

CCP403.9 2
Recap

 In the earlier classes, YOU learnt to solve

Correlation problems in Karl Pearson’s
Direct/Deviation/Short-cut Methods

 Now, let us solve another problem in

Short-cut Method

CCP403.9 3
Example 1

Find Karl Pearson’s COC for the following by

shortcut method:

Husband 20 22 23 25 25 28 29 30 30 34
age

Wife age 18 20 22 24 21 26 26 25 27 29

CCP403.9 4
4
Solution to Ex. 1

Calculation of Karl Pearson’s Co-efficient of Correlation

(shortcut method)

X dx = (X-25) dx2 Y dy = (Y-25) dy2 dxdy

20 5
- 25 18 -7 49 + 35
22 -3 9 20 5
- 25 + 15
23 -2 4 22 -3 9 +6
25=A 0 0 24 -1 1 0
25 0 0 21 -4 16 0
28 +3 9 26 +1 1 +3
29 +4 16 26 +1 1 +4
30 +5 25 25=A 0 0 0
30 +5 25 27 +2 4 + 10
34 +9 81 29 +4 16 + 36
N= ∑dx= 16 ∑dx2 = N= ∑dy= - 12 ∑dy2= ∑dxdy
10 194 10 122 = 109
CCP403.9 5
Solution Contd

N  dxd y   dx   d y
r
N  d x 2  ( d x ) 2  N  d y 2  ( d y ) 2

10  109  (16)  (12)

r
10 194  (16) 2  10 122  (12) 2
10  109  (16)  (12)
r
10 194  (16)  10 122  (12)
2 2

1090  192
r  0.952
1684  1076
CCP403.9 6
Solution contd

Interpretation:

 Since the value of “ r “ = + 0.952, there is

HIGH degree of Correlation between the
Two variables of X and Y

CCP403.9 7
Summary

Karl Pearson’s Co-efficient of Correlation in

SHORT-CUT METHOD

Formula:-

N  dxd y   dx   d y
r
N  d x 2  ( d x ) 2  N  d y 2  ( d y ) 2

CCP403.9 8
Quiz

1) If the value of r = +1, it means –

a) High degree of COC between variables

b) Low degree of COC between variables

c) Perfect Positive Correlation

d) None of the above

CCP403.9 9
Quiz

2) If the value of r = -1, it means –

a) High degree of COC between variables

b) Perfect Negative Correlation

c) Low degree of COC between variables

d) None of the above

CCP403.9 10
Frequently Asked Questions
1. A group of 8 boys got the following marks in an
exam in Economics and Banking

PIN 1 2 3 4 5 6 7 8
Economics 55 68 66 71 78 49 77 88
Banking 80 71 60 77 90 82 70 50

Ans: -0.475

CCP403.9 11
Frequently Asked Questions

2. Calculate Karl Pearson’s COC between Sales and

Sales expenses of 10 firms

Firm No 1 2 3 4 5 6 7 8 9 10

Sales (Rs. 50 50 55 60 65 65 65 60 60 50
Lakhs)
Sales Exp 11 13 14 16 16 15 15 14 13 13
(Rs. 000’s)

Ans: r = 0.7866
CCP403.9 12
Assignment

1) Find out the Karl Pearson’s Correlation Co-

efficient for the paired data given below:

X 28 41 40 38 35 33 40 32 36 33

Y 23 34 33 34 30 26 28 31 36 38

Ans: r = 0.44

CCP403.9 13
Assignment

1) Find out the Karl Pearson’s Correlation

Co-efficient between x and y given below:

X 60 62 64 66 68 70 72

Y 61 63 63 63 64 65 62

Ans:r = 0.939

CCP403.9 14
Assignment

1) Calculate Pearson’s Correlation Co-efficient

between x and y given below:

X 43 44 46 40 44 42 45 42 38 40 42 57

Y 29 31 19 18 19 27 27 29 41 30 26 10

Ans: r = 0.733

CCP403.9 15
Assignment
4) For more problems on Correlation Co-efficient in
Karl Pearson’s method, refer to:
a) “Statistics – Problems and Solutions” by
V.K.Kapoor
b) “Fundamentals of Statistics” by S.C.Gupta
c) “Statistical Methods” by S.P.Gupta
d) Any other text book suggested by your
teacher
e) Previous Year’s Exam Question Paper of
SBTET
CCP403.9 16