Correlation and Regression

Correlation and Regression
1
PROF. MYLLAH D. GARCIA
Prof. Myllah D. Garcia
Objectives:
2
After completing this chapter, you should be able to

Draw a scatter plot for a set of ordered pairs.
Compute the correlation coefficient
Test the hypothesis
Compute the equation of the regression line.
Compute the coefficient of determination
Compute the standard error of the estimate
Find the prediction interval
Be familiar with the concept of multiple regression
Correlation
3
A correlation exists between two variables when the
values of one variable are somehow associated with

the values of the other variable.
A Correlation Analysis is a group of techniques to
measure the strength of the association between two
variables.
Scatter Diagram
4
A chart that portrays the relationship between two
variables.
Example: Construct a scatter plot for the data
obtained in a study of age and systolic blood pressure
of six randomly selected subjects.
Subje Age Pressure

ct
(x)
(y)
A
43
128
B
48
120
C
56
135
D
61
143
E
67
141
F
70
152
Scatter Plot
5
160
140
120
100
80T itle
Axis
60
40
20
Age and Systolic Blood Pressure

0
40
45
50
55
60
65
70
75
Axis T itle
Perfect Positive Association

6
The variables are positively related, since larger
values of the dependent variable are associated with

larger values of the independent variable, and vice
versa. The values are on a straight line, and therefore
one can say that there is a perfect positive
association between the variables. Perfect
association rarely occurs when sample data are
collected.
Perfect negative association

7
shows variables that are negatively related, since
larger values of the dependent variable are

associated with smaller values of the independent
variable, and vice versa. The values are on a straight
line, and therefore one can say that there is a perfect
negative association between the variables. Again,
perfect association rarely occurs with sample data.
Very strong positive association

8
shows variables that are positively related. The
values are not on a straight line, but they are

somewhat closely packed together in a linear
manner, and so one can say that there is a very
strong positive association between the variables.
Very strong negative association

9
shows variables that are negatively related. The
values are not on a straight line, but they are

relatively closely packed together in a somewhat
linear pattern, and so one can say that there is a very
strong negative association between the variables.
No association
10
does not show any noticeable pattern. The values are
scattered around, and so one can say that there is

very little association between the variables.
Nonlinear association
11
does not show any noticeable linear pattern. The
scatter plot displays a nonlinear or curvilinear

relationship. We will not study such relationships in
this text but will concentrate only on linear
relationships between two variables.
Correlation Coefficient
12
Correlation Coefficient describes the strength of the
relationship between two variables.

The linear correlation coefficient r measures the
strength of the linear correlation between paired
quantitative x- and y-values in a sample.
The linear correlation coefficient is sometimes
referred to as the Pearson product moment
correlation coefficient in honor of Karl Pearson
(1857-1936), who originally developed it.
Coefficient of Correlation
13
Properties of the Correlation Coefficient

14
The range of the correlation coefficient is from -1 to +l.

If there is a perfect positive linear relationship between the
variables, the value of r will be equal to +l.

If there is a perfect negative linear relationship between
the variables, the value of r will be equal to -1.
If there is a strong positive linear relationship between the
variables, the value of r will be close to +l
If there is a strong negative linear relationship between the
variables, the value of r will be close to -1.
If there is little or no linear relationship between the
variables, the value of r will be close to 0.
Range of the correlation coefficient r

15
Example
16
Compute the correlation coefficient for the following
set of observations for the independent variable x

and the dependent variable y.
Answer
17
The value of r suggests a strong negative relationship
between the independent variable x and the dependent

variable y. That is, the higher the value of x, the lower the
value of y.
Example
18
Find the value of the linear correlation coefficient r
for the paired pizza / subway fare costs.
Answer
19
Example
20
Compute the value of correlation coefficient for the
data obtained in the study of age and blood pressure.

Subje Age Pressure
ct
(x)
(y)
A
43
128
B
48
120
C
56
135
D
61
143
E
67
141
F
70
152
Answer
21
Subje Age Pressure

ct
(x)
(y)
xy
43
128
5,504 1,849 16,384
48
120
5,760 2,304 14,400
56
135
7,560 3,136 18,225
61
143
8,723 3,721 20,449
67
141
9,447 4,489 19,881
F
70 coefficient
152 suggests
10,640 a
4,900
The correlation
strong23,104
positive
relationship
between age and blood pressure.
The Significance of the Correlation Coefficient

22
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
State the hypothesis

Find the critical values
Compute the test value
Make the decision
Summarize the results.
Population Correlation Coefficient

23
The Population Correlation Coefficient
is the
correlation computed by using all possible pairs of
data values (x, y) taken from a population.
This null hypothesis means that there is no
correlation between x and y in the population.

This alternative hypothesis means that there is a
significant correlation between the variables in the

population.
Hypothesis Test for Correlation

24
Hypothesis Test for Correlation

25
Formula for the t Test for the Correlation

Coefficient
26
with degrees of freedom equal to n-2
Example
27
Test the significance of the correlation coefficient in
age / blood pressure problem. Use

Solution:
Step 1:
Step 2: From t Table, the critical values are
Step 3:
Step 4: Reject the null hypothesis

Step 5: There is a significant relationship between the
variables of age and blood pressure.
Example: Pizza / Subway Fare Costs

28
Use the paired pizza / subway fare data to test the
claim that there is a linear correlation between the

costs of a slice of pizza and the subway fares. Use
significance level.
Answer
29
Step 1:
Step 2: From t Table at n= 6 and
Step 3:
, the critical values are
Step 4: Reject the null hypothesis

Step 5: We conclude that there is sufficient evidence to
support the linear correlation between costs of a
slice pizza and subway fares.
Regression
30
Regression Analysis is technique used to develop the
equation for the straight line and make these

predictions.
Regression Equation an equation that defines the
relationship between two variables.
Line of Best Fit

31
Given a scatter plot, one must be able to draw the
line of best fit. Best fit means that the sum of the
squares of the vertical distances from each point to
the line is at a minimum.
The reason one needs a line of best fit is that the
values of y will be predicted from the values of x;
hence, the closer the points are to the line, the better
the fit and the prediction will be.
Least Square Principles

32
Determining the regression equation by minimizing
the sum of the squares of the vertical distances

between the actual Y values and the predicted values
of Y.
Regression equation
33
Given a collection of paired sample data, the
regression equation
algebraically describes the relationship between the
two variables x and y. The graph of the regression
equation is called the regression line (or line of
the best fit, or least-squares line).
Formulas for the Regression Line

34
Where a is the y intercept and b is the slope of the
line.
Example: Age and Blood pressure

35
Find the equation of the regression line for the data,
and graph the line on the scatter plot of the data.

Subje Age Pressure
ct
(x)
(y)
xy
43
128
5,504 1,849 16,384
48
120
5,760 2,304 14,400
56
135
7,560 3,136 18,225
61
143
8,723 3,721 20,449
67
141
9,447 4,489 Correlation

19,881and Regression
Answer
36
Regression Line
37
Chart Title
160
f(x) = 0.96x + 81.05
140
120
100
Axis T itle
80
60
40
20
0
40
45
50
55
60
Axis T itle
65
70
75
Example
38
Using the equation of the regression line found in
Age/blood pressure example, predict the blood

pressure for a person who is 50 years old.
Solution:
at x = 50
In other words, the predicted systolic blood pressure
for a 50-year-old person is 129.
Assumptions for Valid Predictions in Regression

39
For any specific value of the independent variable

x, the value of the dependent variable y must be
normally distributed about the regression line.
2. The standard deviation of each of the depended
variables must be the same for each value of the
independent variable.
1.
Exercise 1: Testing for a Linear Correlation

40
Construct a scatter plot, find the value of the Linear
Correlation Coefficient r, and find the critical value

of r using
. Determine whether there is
sufficient evidence to support a claim of a linear
correlation between the two variables.
Listed below are systolic blood pressure
measurements (in mm Hg) obtained from the same
woman. Is there sufficient evidence to conclude that
there is a linear correlation between right and left
arm systolic blood pressure measurement?
Exercise
41
Finding the equation of the Regression Line and
Making Predictions
Find the best predicted systolic blood pressure in the
left arm given that the systolic blood pressure in the
right arm is 100 mm Hg.
Exercise 2: Testing for a Linear Correlation

42
Construct a scatter plot, find the value of the Linear
Correlation Coefficient r, and find the critical value of r

using
. Determine whether there is sufficient
evidence to support a claim of a linear correlation between
the two variables.
Listed below are the brain sizes (cm) and Wechsler IQ
score of subjects. Is there sufficient evidence to conclude
that there is a linear correlation between brain size and IQ
score? Does it appear that people with larger brains are
more intelligent?
Exercise
43
Brain Size and Intelligence

Find the best predicted IQ score of someone with a
brain of 1,275 cm.
44
45
46
47
48

Correlation and Regression

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Correlation and Regression

Diunggah oleh

Hak Cipta:

Format Tersedia

Correlation and Regression

Prof. Myllah D. Garcia