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Now,

Since r is positive and 0.6. This shows that the correlation is positive and moderate (i.e. direct and reasonably good).

Example From the following data compute the coefficient of correlation between x and y.


Example If covariance between x and y is 12.3 and the variance of x and y are 16.4 and 13.8 respectively. Find the coefficient of correlation between them.

Solution: Given - Covariance = cov ( x, y ) = 12.3

Variance of x ( s x2 )= 16.4

Variance of y (sy2 ) = 13.8

Now,

Index

6. 1 Introduction
6. 2 Correlation
6. 3 Types of Correlation
6. 4 Degrees of Correlation
6. 5 Methods of determining correlation
6. 6 Coefficients of Correlation for Bivariate Grouped Data
6. 7 Probable Error
6. 8 Rank Correlation Coefficient
6. 9 Linear Regression

Chapter 7





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