Thursday, June 2, 2022

Meaning of Correlation

Definition


A coefficient of correlation is a single number that tells us to what extent two things are related, to what extent variation in one go with variations in the other.

          The coefficient of correlation is the ratio which expresses the extent to which changes in one variable are accompanied by-or dependent upon-changes in second variable.

 

Introduction

The association or relationship between two variables or phenomena. Simple correlation means linear correlation between two variables. It explains how one thing varies with another. It’s a single number that paints a picture of relationship between variables. It explains a kind of interdependency among variables. Correlation attempts to draw a line of best fit through the data of two variables, and the value of the Pearson correlation coefficient, r, indicates how far away all these data points are to this line of best fit. Also known as bivariate correlation.

Most Common Types of Correlation

(i)        Pearson Product-Moment Method (r)

(ii)       Spearman Rank Difference Method (ρ)

(i)       Pearson Product-Moment Method (r) - The Pearson's correlation coefficient (r) is the  covariance (the covariance is defined as the expected value (or mean) of the product of their deviations from their individual expected values) of the two variables divided by the product of their standard deviations. Also known as product-moment method and used for data that meets the assumptions of normal distribution (Parametric statistics tool).

 Computation of Coefficient of Correlation

The Pearson’s correlation coefficient (r) is used to determine the strength and the direction of the relationship between X and Y variables. The variable should have measured at interval level.



Where,          𝒓_𝒙𝒚 = Correlation between X and Y

                    X = X score

                    Y = Y scores

                    𝑵 = Sample size

 

(ii)      Spearman Rank Difference Method (ρ)

The Spearman Rank Difference correlation is non-parametric statistical tool used where data is measured in ordinal form and does not meet the assumptions of normal distribution.


Salient Features of Correlation 

(i)        It is the important tool of scientific prediction.

(ii)       It explains causal relationships.

(iii)      It varies from -1 to 1.

(iv)      Correlation [Coefficient] is a directional (Positive or Negative) index.

(v)       It can be linear as well as curvilinear.

 

Some Traditions   

1.       For to compute correlation coefficient the cases should not be less than 25.

2.       Broad and tentative classification of coefficient of correlation.

 

Values of r

Interpretation

.00 to ± .20

Indifferent or Negligible Correlation

± .20 to ± .40

Low Correlation

± .40 to ± .70

Substantial or marked Correlation

± .70 to ± 1.00

High or Very High

 Expression of Correlation as Agreement of Ranks

 

Context for Decision Making in Regard to Coefficient of Correlation

(i)        The nature of selected variables.

(ii)       The significance of the coefficient.

(iii)      The variability of the group.

(iv)      The reliability coefficient of the tests used.

(v)       The purpose for which r is computed.

 

References:

1.       https://stattrek.com/probability-distributions/poisson.aspx.

2.       https://www.itl.nist.gov/div898/handbook/eda/section3/eda366j.htm

3.       https://brilliant.org/wiki/poisson-distribution/

4.       https://www.statisticshowto.com/poisson-distribution/

 

 

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