Pearson Product Moment of Correlation

Pearson Product Moment of
Correlation
CORRELATION ANALYSIS:
Correlation is a statistical method used to determine whether a relationship between
variables exists. A variable here is characteristic of the population being observed or
measured
Types of Relationships:

1. Simple
2. Multiple

Simple Relationship - in this relationship two variables are present, these
are Independent Variables and Dependent Variables

 Independent Variables - are explanatory variables or predictor variables
 Dependent variables - are response variables

A simple relationship can be positive or negative.

 A positive relationship exists when either variable increases at the same time or
both decrease at the same time.
 A negative relationship exists as one variable increases the other variable
decreases or vice versa.

PEARSON PRODUCT MOMENT OF CORRELATION:
Pearson Product- Moment of Correlation or simply correlation ( Pearson r ) -
It is the most widely used measure in statistics to measure the degree of relationship
between the linear related variables. The Pearson r correlation would require both
variables to be normally distributed. Correlation refers to the departure of two random
variables from independence.
The correlation coefficient is defined as the covariance divided by the standard
deviation of the variables. This is the formula to be used:




Example: