Correlation Regression and Trend Analysis

CORRELATION
ANALYSIS
RESEARCH AND STATISTICS
1 What is CORRELATION
MAGNITUDE, SCATTERPLOTS, AND TYPES OF

OUTLINE 2
RELATIONSHIPS
MAJOR WAYS TO MEASURE THE DEGREE OF

3
CORRELATION BETWEEN VARIABLES
Correlation Linear/simple
CORRELATION
coefficient correlation
• defined as a bivariate • a means of • is referred to a

measure of expressing straight-line
association aimed at relationship in a relationship between
indicating the quantitative manner. two variables
strength of the It is usually denoted
relationship between by the letter (r) or
two variables. (rho) or (w).
03
MAGNITUDE, SCATTERPLOTS, AND TYPES OF
RELATIONSHIPS
Magnitude
• •is an indication of the strength of the relationship between two variables.
a correlation coefficient is a measure of the degree of relationship between
two variables; it can vary between -1.00 and +1.00
04
Scatterplot or
Scattergram
• •is •a figure showing the
relationship between two
variables, graphically
represents a correlation
coefficient.
On the right, is a sample

of a scatterplot of the height and
weight relationship for 20 adults:
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A DEGREE OF CORRELATION BETWEEN VARIABLES
ARE MEASURED USING THE FOLLOWING FOUR
MAJOR WAYS:
2. Pearson's Product 3. Kendall's

4. Regression
1. Spearman's Rank Coefficient of
Moment Correlation Analysis
Order Correlation Concordance (w)
Coefficient (r)
Coefficient (rho)
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It is used to estimate or approximate
Spearman's Rank Order
Correlation Coefficient (rho) the product moment correlation
coefficient and is given by the formulae:
It is a non-parametric test that is

based on the ranks or order of
observations of a bivariate data. If
both variables are normally
distributed but expressed in ranks,
then the Spearman's rank correlation
is used.
08
Example 10: The following table gives marks obtained by 10 students in
Mathematics (X) and Computer (Y) examinations. Find out the Spearman's Rank
Correlation Coefficient.
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Pearson's Product Moment Correlation Coefficient (r)
It is a parametric test that also examines relationships. It is more
powerful statistic than rank correlation but both sorts to find out
relationships between variables.
The Pearson's product moment correlation coefficient is computed using any of the
following formulae:
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Pearson's Product Moment
Correlation Coefficient (r)
Example: Calculate the

Pearson Product
Moment Correlation (r)
between two sets of
scores obtained by the
same group of seven
students in Mathematics
(X) and Statistics (Y) tests
as shown in the table on
the right:
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Kendall's Coefficient
of Concordance (w)
Kendell's coefficient of
concordance is also based on
the ranks or order of
observations of a multivariate
data. It is a statistical
technique that is used to
determine the relationship
between three or more sets
of ranks.
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REGRESSION
ANALYSIS
RESEARCH AND STATISTICS
1 What is REGRESSION ANALYSIS
OUTLINE
2 TYPES OF REGRESSION
REGRESSION Two Basic Types of
ANALYSIS Regression
• regression is a process • A procedure that • Linear Regression

of determining the allows us to predict • uses one independent
statistical relationship an individual’s score variable to predict the
between a random on one variable outcome of the other (Y)
variable and one or based on knowing • Multiple Regression
more independent one or more other • uses two or more
variables used to variables independent variables to
predict the value of the predict the outcome of
random variable the other (Y).
(Anikweze, 2013b)
03
The simplest way to make predictions
Linear Regression
is to use linear regression which is
computed as:
The term 'linear' in linear

regression refers to the fact
that the relationship between the
dependent variable and the
independent variable(s) is a linear
one. In other words, the
relationship between the variables
can be represented by a straight
line
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Example: Find the line of regression of X and Y from the table below:
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Trend Analysis
Trend analysis is a methodology used
in research to gather and study data for
prediction-making about future consumer
behavior. Also known as “Horizontal
Analysis”
Example of Trend Analysis
Sales patterns
A team of financial analysts may review
sales patterns to determine whether
they are increasing or decreasing and
what the sources of these shifts are.
Sales patterns may change because of
new products, a new customer base or
the specifications of different sales
regions.
How do we conduct Trend Analysis?
u Step 1: Gather the financial data
u Step 2: Choose the financial metrics to be analysed
u Step 3: Calculate the percentage change
u Step 3: Plot the data on a graph
u Step 5: Analyse the trends and patterns
Reference: https://upstox.com/learning-center
Formula for Trend Analysis
u The general approach involves computing the percentage change in the metric
during a particular period. The formula is as follows:
Percentage change = [(Current value – Previous value)

/ Previous value] x 100
Why do we use Trend Analysis in
research?
u To spot a prevalent trend within a user group and/or to
determine how a trend developed/would develop over
time.
u It helps identify new opportunities and ideas for concepts
or products.
u It aids in forecasting and decision making.
Reference: https://think.design/user-design-research

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CORRELATION

MAGNITUDE, SCATTERPLOTS, AND TYPES OF

MAJOR WAYS TO MEASURE THE DEGREE OF

• defined as a bivariate • a means of • is referred to a

On the right, is a sample

2. Pearson's Product 3. Kendall's

It is a non-parametric test that is

Example: Calculate the

• regression is a process • A procedure that • Linear Regression

The term 'linear' in linear

Percentage change = [(Current value – Previous value)

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