Statistical Packages and its Applications
Semester Fall 2020
STA641
STA641 GDB No 1 Solution 2020-Fall 2020-VU-Digilearnerspoint
What is the difference between correlation and correlation
coefficient? Briefly describe.
Solution
Correlation
It is a technique that used to find
the relationship between the two variables.
Correlation Coefficient
In statistics, it is a formula denoted by R or r that explain
the following two facts:
1.
Magnitude of
relationship between variables
2.
And Direction of
relations prevailing between the two.
The form
of the formula for two variables say x (independent) and y (dependent) having
linear connection is
R= rxy =(
OR
R=rxy=
Its value ranges from -1 to +1.
·
If rxy = 0,
there is no relationship exist
·
IF rxy =1,
Strong relationship exist with positive direction-meaning both move in the same direction
that if one variable (independent) increases the second variable s(Dependent)
also increases.
·
If rxy = -1, the reverse of the facts as depicted in the second point.