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    Subject: Business Mathematics Prof. Shruti Chandak

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    Neeraj Sharma
    The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

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    Subject: Business Mathematics Prof. Shruti Chandak

    Uploaded by

    Neeraj Sharma
    60 views21 pages
    The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

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    Correlation

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    The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    60 views21 pages

    Subject: Business Mathematics Prof. Shruti Chandak

    Uploaded by

    Neeraj Sharma
    The document discusses various concepts related to correlation including positive and negative correlation, linear and non-linear correlation, and different methods of calculating correlation coefficients such as Pearson's coefficient, Spearman's rank correlation coefficient, and concurrent deviation method. It also provides 12 practice problems involving calculating different correlation coefficients from bivariate data.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    Subject : Business Mathematics

    Prof. Shruti Chandak


     Correlation is the relationship that exists
    between two or more variables.

     If variables are related to each other in such a


    way that change in one creates a
    corresponding change in other, then the
    variables are said to be correlated.
     The relationship between heights and weights.

     The relationship between the quantum of rainfall


    and yield of crop.

     The relationship between the price of commodity


    and demand of commodity.
     Positive and Negative Correlation

     Linear and Non-linear Correlation

     Simple, Partial and Multiple Correlation


     If r = +1, then perfect Positive Correlation.

     If 0<r<+1, then Positive Correlation.

     If -1<r<0, then Negative Correlation.

     If r = -1, then perfect Negative Correlation.

     If r = 0, then no linear Correlation.


    Methods of
    correlation

    Graphic Algebraic
    Methods Methods

    Scatter Diagram Simple graphic


    Method Method

    Karl Pearson’s Spearman’s Concurrent


    Coefficient of Rank difference Deviation Others
    correlation Method method
     P1. Calculate the coefficient of correlation for the
    following data :--

    X 9 8 7 6 5 4 3 2 1
    Y 15 16 14 13 11 12 10 8 9
     P2. Calculate the Pearson’s coefficient of
    correlation for the following data :--

    Price (Rs)
    22 24 26 28 30 32 34 36 38 40
    Demand
    (Tons) 60 58 58 50 48 48 48 42 36 32
     P3. Calculate the Pearson’s coefficient of
    correlation for the following data :--
    ◦ Sum of deviations of x = 5
    ◦ Sum of deviations of y = 4
    ◦ Sum of square of deviations of x = 40
    ◦ Sum of square of deviations of y = 50
    ◦ Sum of the product of deviations of x and y = 32
    ◦ No. of pairs of observations = 10
     P4. Calculate the Pearson’s coefficient of
    correlation for the following data :--

    X 100 110 115 116 120 125 130 135

    Y 18 18 17 16 16 15 13 10
     P5. Calculate the Pearson’s coefficient of
    correlation for the following data :--

    Marks in 20 35 15 40 10 35 30 25 45 30
    statistics (X)
    Marks in 25 30 20 35 20 25 25 35 35 30
    Accounts (Y)
     P6. Calculate the Pearson’s coefficient of correlation
    for the following data :--

    X Y
    series series
    No. of observations 15 15

    Arithmetic Mean 25 18

    S.D 5 5

    Ʃ (X – 25) (Y – 18) = 125


     P7. The total of the multiplication of deviation of
    X and Y = 3044. No. of pairs of the observation is
    10. Total of deviations of X=-170. Total of
    deviations of y = -20. Total of the squares of
    deviations of x = 8288. Total of the squares of
    deviations of y = 2264. Find out the coefficient of
    correlation when arbitrary means of x and y are
    82 and 68 respectively.
     P8. Two teachers were asked to rank 7 students on
    the basis of their singing competition. The ranks
    given by them are given below :--
    Student 1 2 3 4 5 6 7

    Teacher 1 4 2 1 3 5 7 6

    Teacher 2 1 3 2 4 5 6 7

    Calculate the Spearman’s coefficient of correlation.


     P9. Two teachers were asked to rank 7 students on
    the basis of their singing competition. The marks
    assigned to these students out of maximum 50 are
    given below :--
    Student 1 2 3 4 5 6 7

    Teacher 1 39 43 45 42 36 32 28

    Teacher 2 46 41 44 40 38 36 32

    Calculate the Spearman’s coefficient of correlation.


     P10. Calculate the coefficient of rank correlation
    from the following data :--

    X 48 33 40 9 16 16 65 24 16 57

    y 13 13 24 6 15 4 20 9 6 19
     P11. Calculate the coefficient of rank correlation
    from the following data :--

    X 8 10 7 15 3 20 21 5 10 14 8 16 22 19 6

    y 3 12 8 13 20 9 14 11 4 16 15 10 18 23 25
     P12. The coefficient of rank correlation of the
    marks obtained by 10 students in two particular
    subjects was found to be 0.5. It was later
    discovered that the difference in ranks in two
    subjects obtained by one of the student was
    wrongly taken as 3 instead of 7. What should be
    the correct value of coefficients of rank
    correlation?

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