8-Correlation and Regression Analysis
8-Correlation and Regression Analysis
Module 8
Correlation and Regression Analysis
In this part, you shall now know how the degree of relationship
between the variables.
Business Statistics 93
Business Statistics
Formula
n(∑XY)−(∑X)(∑Y)
r=
√[n∑X2 −(∑X)2 ][n∑Y2 −(∑Y)2 ]
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MODULE OF INSTRUCTION
(∑Y)(∑X2 )−(∑X)(∑XY)
a= n∑X2 −(∑X)2
𝑛(∑XY)−(∑X)(∑Y)
b= n∑X2 −(∑X)2
Example
Trainee X Y
1 2 4
2 4 10
3 4 8
4 5 8
5 7 14
6 8 16
Business Statistics 95
Business Statistics
Glossary
Correlation - the strength of relationship between two or more variables
References
Weiers, R. (2008). Business Statistics, Sixth Edition. Natorp
Boulevard; Thomson South-Western.
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