1. MEASURES OF
CORRELATION

2. Correlation
|A measure to determine the degree of
relationship of two sets of variables, X
and Y.

3. Perfect Positive Correlation

4. Perfect Negative Correlation

5. Pearson Product
Moment
Correlation
Coefficient

6. Pearson r
|A linear correlation necessary to find
the degree of the association of two
sets of variables X and Y.

7. F
ormula:
N
rxy
N
X
2
XY
X
X
2
N
Y
Y
2
Y
2

8. rxy = correlation between X and Y
X = sum of test X
Y = sum of test Y
∑XY= sum of the product of X and Y
N = number of cases
X 2 = sum of squared X scores
Y 2 =sum of squared Y scores

9. F example:
or

11. r=0.99

12. Spearman Rank
Correlation
Coefficient or
Spearman Rho

13. Spearman Rho
|A statistic which is used to measure
the relationship of paired ranks assigned
to individual scores on two variables.

14. F
ormula:

15. rs
= Spearman rho
D2 =
sum of the squared differences between
ranks
N = Number of cases

16. Computation of Spearman rho Between Capital
(X) and Profit (Y) of Dried Fish
Businessmen
1
2
3
4
5
6
7
8
9
10
X
Php 20,000
50,000
10,000
100,000
18,000
25,000
11,000
150,000
5,000
40,000
Y
Php5,000
15,000
3,000
30,000
4,000
9,000
6,000
70,000
3,000
15,000

17. Computation of Spearman rho Between Capital (X) and
Profit (Y) of Dried Fish
Businessmen
X
Y
Rx
1
2
3
4
5
6
7
8
9
10
Php 20,000
50,000
10,000
100,000
18,000
25,000
11,000
150,000
5,000
40,000
Php5,000
15,000
3,000
30,000
4,000
9,000
6,000
70,000
3,000
15,000
6
3
9
2
7
5
8
1
10
4
Ry
7
3.5
9.5
2
8
5.0
6.0
1
9.5
3.5

18. Computation of Spearman rho Between Capital (X) and
Profit (Y) of Dried Fish
Businessmen
X
Y
1
Php 20,000
2
D
D2
Rx
Ry
Php5,000
6
7
1.0
1.00
50,000
15,000
3
3.5
-0.5
0.25
3
10,000
3,000
9
9.5
-0.5
0.25
4
100,000
30,000
2
2
0
0
5
18,000
4,000
7
8
-1.0
1.00
6
25,000
9,000
5
5.0
0
0
7
11,000
6,000
8
6.0
2.0
4.00
8
150,000
70,000
1
1
0
0
9
5,000
3,000
10
9.5
0.5
0.25
10
40,000
15,000
4
3.5
0.5
0.25

19. Computation of Spearman rho Between Capital (X) and
Profit (Y) of Dried Fish

20. Interpretation
of Correlation
Value

21. Consider the following:
|An r from 0.00 to +0.20 denotes neglible correlation
|An r from +0.20 to + 0.40 denotes low or slight
relationship
|An r from +0.41 to + 0.70 denotes marked or moderate
correlation
|An r from +0.71 to + 0.90 denotes high relationship
|An r from +0.91 to + 0.99 denotes very high relationship
|An r from +1..00 denotes perfect relationship

22. THANK YOU!