Functional Relationship

Two variables x and y are functionally related

when the value of the second variable can be
calculated when the value of the first is known.
Example
If a stone is dropped, the formula that allows us
to accurately calculate the height if it is a function
of elapsed time is:
h = g t.

Statistical Relationship
Two variables x and y are related statistically
when the value of the second variable can be
approximately estimated when the first is known.
Examples
Income and expenses for a family.
Production and sales for a factory.
Advertising expenses and profits for a corporate
enterprise.
If each pair of values is represented as the
coordinates of a point, the set of all points on a
graph is called a scatter plot or a scatter diagram.
A line can be drawn on a scatter plot which best
represents the trend of the points. This line is called
a regression line.

Examples

The scores of 12 students in their Mathematics and Physics classes are:

Mathematics

10

10

Physics

10

Covariance

The covariance is

the arithmetic

mean of

deviations of each variable to their respective means.

Covariance is denoted by cov(X,Y).

the products

of

The

covariance

in dicates

the

sign

of

the correlation between

the

variables.

If cov(X, Y) > 0 the correlation is positive.

If cov(X, Y) < 0 the correlation is negative.

As a disadvantage, its value depends on the chosen scale. That is, the
covariance will vary if the height is expressed in meters or feet. It will also
vary if money is expressed in euros or dollars.
Examples

The scores of 12 students in their mathematics and phys ics classes are:

Mathematics

10

10

Physics

10

Find the covariance of the dis tribution.

xi

yi

xi yi

16

20

24

36

28

42

56

10

90

10

10

100

72

60

431

After tabulating the data, the arithmetic means can be found:

The values of the two variables X and Y are distributed according to the
following table:

Y/X

Next, find the covariance of the dis tribution.

Convert the double entry table into a simple table and compute the
arithmetic means.

xi

yi

fi

xi fi

yi fi

xi yi fi

16

10

15

30

12

12

16

20

40

41

76

Correlation

Correlation is a relationship or dependency that exists between two

variables.

If a correlation exis ts, it is said that the variables are correlated or

there is a correlation between them.

Types of Correlation

Positive Correlation

A positive correlation occurs when an increase in one variable increases

the other variable.

The line corresponding to the scatter plot is an increas ing line.

Negative Correlation

A negative correlation occurs when an inc rease in one variable decreases

the other.

The line corresponding to the scatter plot is a decreasing line.

No Correlation

No correlation occurs when there is no linear dependency between the

variables.

Perfect Correlation

perfect

correlation

occurs

when

there

is

between the variables.

I n this case all the points are in a straight line.

funcional

dependency

Strong Correlation

A correlation is stronger the closer the points are located to one another
on the line.

Weak Correlation

A correlation is weaker the farther apart the points are located to one
another on the line.

http://www.vitutor.com/statistics/regression/correlation.html

Linear Correlation Coefficient

The linear

correlation

coefficient is

the ratio between

the covariance and the product of standard deviations of both variables.

The linear correlation coefficient is denoted by the letter r.

Properties of the Correlation Coefficient

1. The correlation coefficient does not change the measurement scale.

That is, if the heigh t is expressed in meters or feet, the correlation
coefficient does not change.

2. The sign of the correlation coeff icient is the same as the covariance .
3. The linear correlation coefficient is a real number between 1 and 1.
1 r 1

4. If the linear correlation coefficient takes values closer to 1,

the correlation is strong

and

negative ,

and

will

become

stronger

the

closer r approaches 1.

5. If

the linear

correlation

coefficient takes

values

close

to 1 the correlation is strong and positive , and will become stronger the
closer r approaches 1

6. If

the linear

correlation

coefficient takes

values

close

to 0,

the correlation is weak.

7. If r = 1 or r = 1, there is perfect correlation and the line on the

scatter plot is inc reasing or decreasing respectively.

8. If r = 0, there is no linear correlation .

Example

The scores of 12 students in their mathematics and phys ics classes are:

Mathematics

10

10

Physics

10

Find the correlation coeffic ient dis tribution and interpret it.

xi

yi

x i y

xi2

yi2

16

16

16

16

20

25

16

24

36

16

36

36

36

28

49

16

42

49

36

56

64

49

90

1
0

100

431

10
0

81

10

10

50

38

1 Find the arithmetic means .

2 Calculate the covariance .

3 Calculate the standard deviations .

4 Apply the formula for the linear correlation coeffic ient.

The correlation is positive .

As the correlation coefficient is very close to 1, the correlation is

very strong .

The values of the two variables X and Y are distributed according to the
following table:

Y/X

Calcu late the correlation coeffic ient.

Turn the double entry table into a single table.

xi

yi

fi

xi

xi yi

xi2 fi

yi fi

yi2 fi

18

16

16

16

10

20

15

45

30

12

48

12

32

16

20

40

120

41

97

76

fi

fi

The correlation is negative .

As the correlation coefficient is very close to 0, the correlation is

very weak .

Linear Regression
The regression line is the line that best fits or represents the data on the
scatter plot.

Line of Regression of Y on X
The regression line of y on x is used to estimate the values of y from x.

The

slope

of

the

line

is

the

quotient

between

thecovariance and variance of the variable X.

Line of Regression of X on Y
The regression line of x on y is used to estimate the values of x from the
values of y.

The slope of the line is the quotient between the covariance and variance
of the variable y.

If r

0 the regression lines are perpendicular to

each

other, and

their equations are:

y =

x =

Example

The scores of 12 students in their mathematics and phys ics classes are:

Mathematics

10

10

Physics

10

Find the regression lines and represent them.

xi

yi

x i y

xi2

yi2

16

16

16

16

20

25

16

24

36

16

36

36

36

28

49

16

42

49

36

56

64

49

90

1
0

100

431

10
0

81

10

10

50

38

1. Find the arithmetic means .

2. Calculate the covariance .

3. Calculate the variances .

4. Linear regression of y on x.

5. Linear regression of x on y.