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    Yumna Saleem
    The Pearson correlation coefficient measures the strength of the linear relationship between two variables. It ranges from -1 to 1, with values closer to these extremes indicating a stronger linear relationship. The coefficient of determination (r-squared) indicates the percentage of variation in one variable explained by the other variable. Rank correlation, measured by Spearman's coefficient, assesses the relationship between two variables when direct measurements are not possible and the variables are instead ranked.

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    R Square

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    Yumna Saleem
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    The Pearson correlation coefficient measures the strength of the linear relationship between two variables. It ranges from -1 to 1, with values closer to these extremes indicating a stronger linear relationship. The coefficient of determination (r-squared) indicates the percentage of variation in one variable explained by the other variable. Rank correlation, measured by Spearman's coefficient, assesses the relationship between two variables when direct measurements are not possible and the variables are instead ranked.

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    The Pearson correlation coefficient measures the strength of the linear relationship between two variables. It ranges from -1 to 1, with values closer to these extremes indicating a stronger linear relationship. The coefficient of determination (r-squared) indicates the percentage of variation in one variable explained by the other variable. Rank correlation, measured by Spearman's coefficient, assesses the relationship between two variables when direct measurements are not possible and the variables are instead ranked.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    33 views9 pages

    R Square

    Uploaded by

    Yumna Saleem
    The Pearson correlation coefficient measures the strength of the linear relationship between two variables. It ranges from -1 to 1, with values closer to these extremes indicating a stronger linear relationship. The coefficient of determination (r-squared) indicates the percentage of variation in one variable explained by the other variable. Rank correlation, measured by Spearman's coefficient, assesses the relationship between two variables when direct measurements are not possible and the variables are instead ranked.

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    The Pearson correlation coefficient, often

    referred to as the Pearson R test, is a statistical


    formula that measures the strength between
    variables and relationships. To determine how
    strong the relationship is between two variables,
    you need to find the coefficient value, which can
    range between -1.00 and 1.00.
    Term is Coefficient of Correlation denoted by r

    r 
    n x y   x  y
     x2    x  n y    y 
    2 2 2
    n
    COEFFICIENTS OF DETERMINATION

    • It is defined as the square of the


    coefficient of correlation and when
    multiplied by 100, it gives the percentage
    of variation in Y explained by the sample
    regression equation of Y on X.
    • Say, if r = 0.80 then r2 = 0.64 , indicates
    that 64% of variation in Y explained by
    sample regression of Y on X.
    COEFFICIENTS OF DETERMINATION

    • In other words, regression equation reduces 64% of


    the total variation and therefore regression equation
    is 64% reliable to be used for estimation and
    consequently the estimate would be 64% more
    reliable.
    PROBABLE ERROR
    • To check the reliability (significance) of
    coefficient of correlation (r), probable error is
    used. This formula is for calculating P.E.

    P.E. = 0.6745 {(1 – r2)/√n}


    where r is the coefficient of correlation and n
    is the number of pairs of observations
    REMARKS
    • If r is less than P.E. then there is no evidence of
    correlation (correlation is not significant)
    • If r is greater than 6 x P.E. then there is a certain
    correlation (coefficient is significant)
    • If P.E. is comparatively smaller than coefficient of
    correlation, then
    i) If r is less than 0.3 correlation is insignificant
    ii) If r is more than 0.3 then there is a good
    evidence of correlation
    RANK CORRELATION
    • When there is no unit of measurement in the
    magnitude of two variables or when the direct
    measurement of variables are not possible.
    They are then ranked in order of the quality
    possessed.
    • Correlation between two such sets of ranking is
    called Rank Correlation or Spearman’s
    coefficient of rank correlation and is designated
    by rs
    RANK CORRELATION

    • rs = 1 – { (6∑ d2)/(n(n2-1))}

    • Where d is the difference of ranks and n is


    the number of paired observations and also
    -1 ≤ rs ≤ +1

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