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- 1. Hochschule Bonn Rhein SiegSubmitted By : Divyanshu Singh Yalin WangSubmitted To : Prof. Dr. Dr. Franz PerenWS- 2011 MBA-NGO : Business Statistics
- 2. Suppose you have now your own NGO, and you find yourself asking aquestion like one of the following:A) Your NGO is still at the starting phase, you have different budget eachyear, and you want to expand the NGO size, have more staff, then you havea list of the recent years staff numbers and budget numbers, you wonder ifthere is any connection between.B) You ask two of your project officers to independently evaluate all the 5projects in your NGO according to how good they perceive each project tobe (by giving from low to high points) . Are the evaluations consistentbetween the two officers, or do they have different perceptions aboutwhich the better performing project is?If you have faced such questions and dont know exactly how to approachthem, this presentation will provide you some help. The appropriateapproach for these examples is correlation analysis, and we would like tointroduce you the ABC of correlation analysis and how to use SPSS toperform all the necessary calculations.
- 3. Contents1) What is Correlation Analysis?2) How is it calculated?3) What is the purpose of Correlation Analysis?4) How are the results of Correlation Analysis interpreted?5) How to perform Correlation Analysis using SPSS software?6) How to interpret the results from SPSS?
- 4. 1. What is Correlation Analysis?1.1 Definition:o Statistical technique to determine the dependence between 2 or more variables. In another word, Correlation is a statistical technique that can show whether and how strongly pairs of variables are related.o a) Linear dependence b) Non-linear correlation c) No correlationo Correlation coefficients: a) Pearson’s coefficient (r) b) Spearmans coefficient (rho or ‘ρ’) c) Kendall’s coefficient (tau-b ) d) Point biserial coefficient etc…
- 5. 2. How is it calculated?
- 6. Correlation Co-efficient Example:To find the Correlation of Your NGO Number of staff Project Budget, 10K Year (X Values) (Y Values) 2008 2.1 18 2009 17 2.0 2010 22 1.5 2011 21 2.2 Step 1: Count the number of values or elements, suppose we want to evaluate the relationship between X and Y N=4
- 7. Step 2:Find out the value of XY, X2, Y2See the below table X Value Y Value X*Y X*X Y*Y 18 2.1 18 * 2.1 = 37.8 18 *18 = 324 2.1 * 2.1 = 4.41 17 2.0 17 * 2.0 = 34 17 * 17 = 289 2.0 * 2.0= 4 22 1.5 22 * 1.5 = 33 22* 22 = 484 1.5 * 1.5 = 2.25 21 2.2 21 * 2.2 = 46.2 21* 21 = 441 2.2 * 2.2 = 4.84
- 8. Step 3: Find ΣX, ΣY, ΣXY, ΣX2, ΣY2. ΣX = 78 ΣY = 7.8 ΣXY = 151 ΣX2 = 1538 ΣY2 = 15.5
- 9. 3. How are the results of Correlation Analysis interpreted?
- 10. 3. Interpretation of results of Correlation Analysiso Correlation coefficient value ranges between +1 and -1o Correlation Coefficient Values symbolized by ‘r’ : +1 and -1 Linear dependence r = 1 Perfect positive linear correlation r = -1 Perfect negative linear correlation 0 No correlation 0 < r < 1 positive linear correlation -1 < r < 0 negative linear correlation
- 11. 4. What is the purpose of Correlation Analysis?o To determine the extent to which 2 variables vary together.o To determine the strength and direction of relationship.o Does not indicate: One variable could be used to predict the other variable One variable causes the other variableo Applied in the fields of: Scientific Data Analysis Marketing research Business Analysis etc.
- 12. 5. How to perform Correlation Analysis using SPSS software?5.1 Introductiono SPSS (Statistical Package for the Social Sciences) from IBMo Not an open source softwareo Purpose : Data mining , text analytics, statistical analysis5.2 Steps for correlation analysis using SPSS CONTD….
- 13. 5. How to perform Correlation Analysis using SPSS software?1) Create data for analysis or upload an existing data file.2) Select the data for analysis.
- 14. Using SPSS…3) To visualize data and variables.
- 15. Using SPSS…4) Correlate the data using Bivariate function.
- 16. Using SPSS…5) Parameters for statistical analysis. Selection of Variables to correlate. Selection of type of Correlation Coefficient. Selection of type of Significance test.
- 17. 6.How to interpret the results from SPSS?
- 18. 6.How to interpret the results from SPSS? In this case the results look good but when they are not scatter plot can be used to reveal the outliers which could be avoided for further analysis. This is how we get the scatter plot of the data.
- 19. 6.How to interpret the results from SPSS? Split the data file using the Data->Split File->Compare groups->No.of working hours-> Ok More accurate view of association
- 20. Interpretation of Case Study Increase in the use of Technology and Efficient service by the bank increase simultaneously. Computerized techniques and ATMs made banking easier and faster. Automated procedures reduced errors caused manually. The same applies to other variables as well. But there is no causation between these variables.
- 21. References http://idlastro.gsfc.nasa.gov/idl_html_help/Correlation_Analysis.html http://www.statsoft.com/textbook/basic-statistics/ SPSS- Tutorial http://www.csulb.edu/~msaintg/ppa696/696stsig.htm http://academic.uofs.edu/department/psych/methods/cannon99/level2a. html http://mathworld.wolfram.com/CorrelationCoefficient.html http://www.cs.uu.nl/docs/vakken/wo2/SPSS/spss3.pdf http://easycalculation.com/statistics/learn-correlation.php
- 22. Thank YouFor Your Attention

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