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MEASURE OF RELATIONSHIP: 
CORRELATION COEFFICIENT 
Prepared by: 
Ms. Lady Asrah A. Carim
Correlation 
• In Statistics, this is commonly concerned to as the correlation 
coefficient. 
• A value of correlation coefficient (r) represents the whole group 
and tells a story the same with mean and standard deviation. 
• For instance, the weight-height relationship of fourth year high 
school students in certain school has a correlation coefficient (r) 
of 0.89, high relationship. This means that the heavier the 
weight, the taller is the student and the lighter the weight, the 
short the student.
Smith/Davis (c) 2005 Prentice Hall 
The Nature of Correlation 
• Often used as means for 
prediction, correlation tells us 
how related two variables are. 
• However, note that even though 
two variables may be highly 
correlated, you should not 
assume that one variable causes 
the other. 
• CORRELATION DOES NOT 
IMPLY CAUSATION. 
• For example, there is the third 
variable possibility (i.e., there 
may be additional variable(s) that 
are causing the two things you are 
investigating to be related to each 
other). 
“There’s a significant 
NEGATIVE correlation 
between the number of mules 
and the number of academics in 
a state, but remember, 
correlation is not causation”
Measures of Correlation 
• These are used both in descriptive and experimental researches. 
• Some examples of descriptive researches on correlation are as 
follows: 
1. Correlation Between Achievement and Economic Status of Fourth 
Year High School Students 
2. IQ and Personality Relationship of Fourth Year High School Students 
3. Correlation Between Mathematics and English Achievements of 
Second Year Students
Measures of Correlation 
• Some examples of experimental researches on correlation are as 
follows: 
1. Weight-Length Relationship of Mudcrab (Alimango) Cultured in the 
Backyard Fishpond Using Bread Meal as Supplemental Feed 
2. The Height-Weight Relationship of Bottle-Fed Infants Using the 
Same Milk Brand 
3. Weight-Length Relationship of Tilapia Cultured in Backyard 
Fishpond Using Trash Fish as Supplemental Feed
Smith/Davis (c) 2005 Prentice Hall 
The Scatterplot: Graphing Correlations 
• Also known as the scatter diagram, the scatterplot 
allows us to visually see the relation between two 
variables. 
• One variable is plotted on the ordinate and the 
other on the abscissa. 
• Although you can list either variable on either axis, it is 
common to place the variable you are attempting to 
predict on the ordinate. 
• Positive correlations – occur when both variables move 
in the same direction (e.g., as NAT scores increase, so to 
do GPAs). 
• Negative Correlations – occur when one variable 
increases, the other decreases (e.g., as age increases, the 
number of speeding tickets decrease).
Smith/Davis (c) 2005 Prentice Hall 
The Range of r Values 
• The Range of r – correlation 
coefficients can range in value 
from -1.00 to +1.00. 
• Perfect positive correlation occurs 
when you have a value of +1.00 and 
as we see an increase of one unit in 
one variable, we always see a 
proportional increase in the other 
variable. 
• The existence of a perfect 
correlation indicates there are no 
other factors present that influence 
the relation we are measuring. This 
situation rarely occurs in real life.
• There are traditionally assigned values ranging from -1 to +1. 
Smith/Davis (c) 2005 Prentice Hall 
The Range of r Values 
• The Range of r – correlation 
coefficients can range in value from - 
1.00 to +1.00. 
• A correlation of -1.00 indicates a 
perfect negative correlation between 
the two variables of interest. That is, 
whenever there is an increase of one 
unit in one variable, there is always 
the same proportional decrease in the 
other variable.
Smith/Davis (c) 2005 Prentice Hall 
The Range of r Values 
• The Range of r – correlation 
coefficients can range in value 
from -1.00 to +1.00. 
• A zero correlation means there is 
little or no relation between the 
two variables. That is, as scores on 
one variable increase, scores on 
the other variable may increase, 
decrease, or not change at all.
Y 
Strong relationships Weak relationships 
X 
Y 
X 
Y 
Y 
X 
X 
Linear Correlation 
Slide from: Statistics for Managers Using Microsoft® Excel 4th Edition, 2004 Prentice-Hall
Linear Correlation 
Y 
X 
Y 
X 
No relationship 
Slide from: Statistics for Managers Using Microsoft® Excel 4th Edition, 2004 Prentice-Hall
Smith/Davis (c) 2005 Prentice Hall 
The Pearson Product Moment Correlation Coefficient 
• The correlation coefficient is the single number that 
represents the degree of relation between two variables. 
• The Pearson Product-Moment Correlation Coefficient 
(symbolized by r) is the most common measure of 
correlation; researchers calculate it when both the X 
variable and the Y variable are interval or ration scale 
measurements. 
• The raw score formula for r is:
Interpretation: 
Value of r Interpretation/Classification 
0.00 to ±ퟎ. ퟐ0 negligible 
±0.21 to ±ퟎ. ퟒퟎ slight 
±0.41 to ±ퟎ. ퟕ0 moderate 
±0.71 to ±ퟎ. ퟗ0 high 
±0.91 to ±ퟎ. ퟗퟗ very high 
±ퟏ Perfect
Measure of Relationship: Correlation Coefficient

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Measure of Relationship: Correlation Coefficient

  • 1. MEASURE OF RELATIONSHIP: CORRELATION COEFFICIENT Prepared by: Ms. Lady Asrah A. Carim
  • 2. Correlation • In Statistics, this is commonly concerned to as the correlation coefficient. • A value of correlation coefficient (r) represents the whole group and tells a story the same with mean and standard deviation. • For instance, the weight-height relationship of fourth year high school students in certain school has a correlation coefficient (r) of 0.89, high relationship. This means that the heavier the weight, the taller is the student and the lighter the weight, the short the student.
  • 3. Smith/Davis (c) 2005 Prentice Hall The Nature of Correlation • Often used as means for prediction, correlation tells us how related two variables are. • However, note that even though two variables may be highly correlated, you should not assume that one variable causes the other. • CORRELATION DOES NOT IMPLY CAUSATION. • For example, there is the third variable possibility (i.e., there may be additional variable(s) that are causing the two things you are investigating to be related to each other). “There’s a significant NEGATIVE correlation between the number of mules and the number of academics in a state, but remember, correlation is not causation”
  • 4. Measures of Correlation • These are used both in descriptive and experimental researches. • Some examples of descriptive researches on correlation are as follows: 1. Correlation Between Achievement and Economic Status of Fourth Year High School Students 2. IQ and Personality Relationship of Fourth Year High School Students 3. Correlation Between Mathematics and English Achievements of Second Year Students
  • 5. Measures of Correlation • Some examples of experimental researches on correlation are as follows: 1. Weight-Length Relationship of Mudcrab (Alimango) Cultured in the Backyard Fishpond Using Bread Meal as Supplemental Feed 2. The Height-Weight Relationship of Bottle-Fed Infants Using the Same Milk Brand 3. Weight-Length Relationship of Tilapia Cultured in Backyard Fishpond Using Trash Fish as Supplemental Feed
  • 6. Smith/Davis (c) 2005 Prentice Hall The Scatterplot: Graphing Correlations • Also known as the scatter diagram, the scatterplot allows us to visually see the relation between two variables. • One variable is plotted on the ordinate and the other on the abscissa. • Although you can list either variable on either axis, it is common to place the variable you are attempting to predict on the ordinate. • Positive correlations – occur when both variables move in the same direction (e.g., as NAT scores increase, so to do GPAs). • Negative Correlations – occur when one variable increases, the other decreases (e.g., as age increases, the number of speeding tickets decrease).
  • 7. Smith/Davis (c) 2005 Prentice Hall The Range of r Values • The Range of r – correlation coefficients can range in value from -1.00 to +1.00. • Perfect positive correlation occurs when you have a value of +1.00 and as we see an increase of one unit in one variable, we always see a proportional increase in the other variable. • The existence of a perfect correlation indicates there are no other factors present that influence the relation we are measuring. This situation rarely occurs in real life.
  • 8. • There are traditionally assigned values ranging from -1 to +1. Smith/Davis (c) 2005 Prentice Hall The Range of r Values • The Range of r – correlation coefficients can range in value from - 1.00 to +1.00. • A correlation of -1.00 indicates a perfect negative correlation between the two variables of interest. That is, whenever there is an increase of one unit in one variable, there is always the same proportional decrease in the other variable.
  • 9. Smith/Davis (c) 2005 Prentice Hall The Range of r Values • The Range of r – correlation coefficients can range in value from -1.00 to +1.00. • A zero correlation means there is little or no relation between the two variables. That is, as scores on one variable increase, scores on the other variable may increase, decrease, or not change at all.
  • 10. Y Strong relationships Weak relationships X Y X Y Y X X Linear Correlation Slide from: Statistics for Managers Using Microsoft® Excel 4th Edition, 2004 Prentice-Hall
  • 11. Linear Correlation Y X Y X No relationship Slide from: Statistics for Managers Using Microsoft® Excel 4th Edition, 2004 Prentice-Hall
  • 12. Smith/Davis (c) 2005 Prentice Hall The Pearson Product Moment Correlation Coefficient • The correlation coefficient is the single number that represents the degree of relation between two variables. • The Pearson Product-Moment Correlation Coefficient (symbolized by r) is the most common measure of correlation; researchers calculate it when both the X variable and the Y variable are interval or ration scale measurements. • The raw score formula for r is:
  • 13. Interpretation: Value of r Interpretation/Classification 0.00 to ±ퟎ. ퟐ0 negligible ±0.21 to ±ퟎ. ퟒퟎ slight ±0.41 to ±ퟎ. ퟕ0 moderate ±0.71 to ±ퟎ. ퟗ0 high ±0.91 to ±ퟎ. ퟗퟗ very high ±ퟏ Perfect