Correlation analysis helps businessmen, economists to analyze the side effects due to change in one variable and also it gives guidelines to them regarding the effect of the change on the other variable.
SCATTER
DIAGRAM
COEFFICIENT
OF CORRELATION
- If 0 < r < 1,
the correlation is positive.
- If r = 1, the
correlation is perfect positive.
- If - 1 < r < 0, then the correlation
is negative.
- If r = - 1, the
correlation is perfect negative.
x:
|
7
|
5
|
4
|
11
|
10
|
12
|
14
|
9
|
y:
|
14
|
8
|
8
|
19
|
16
|
19
|
20
|
16
|
x:
|
14
|
8
|
10
|
11
|
9
|
13
|
5
|
y:
|
14
|
9
|
11
|
13
|
11
|
12
|
4
|
x:
|
84
|
80
|
92
|
85
|
95
|
90
|
83
|
87
|
y:
|
115
|
104
|
122
|
116
|
125
|
120
|
112
|
120
|
x:
|
53
|
47
|
42
|
60
|
63
|
52
|
57
|
55
|
61
|
48
|
y:
|
72
|
61
|
62
|
85
|
80
|
65
|
79
|
75
|
84
|
73
|
x:
|
5
|
8
|
10
|
12
|
15
|
18
|
21
|
24
|
25
|
6
|
y:
|
25
|
21
|
20
|
18
|
16
|
15
|
14
|
12
|
11
|
24
|
x:
|
25
|
20
|
17
|
16
|
20
|
14
|
23
|
21
|
15
|
12
|
y:
|
24
|
17
|
22
|
18
|
20
|
18
|
24
|
20
|
16
|
14
|
x:
|
16
|
13
|
17
|
4
|
3
|
11
|
7
|
14
|
y:
|
88
|
87
|
89
|
72
|
70
|
82
|
78
|
84
|
x:
|
140
|
138
|
126
|
132
|
135
|
131
|
137
|
142
|
y:
|
122
|
140
|
118
|
119
|
132
|
125
|
145
|
150
|
x:
|
53
|
59
|
72
|
43
|
93
|
35
|
55
|
80
|
y:
|
35
|
49
|
63
|
36
|
75
|
28
|
38
|
71
|
x:
|
20
|
22
|
18
|
17
|
10
|
25
|
7
|
15
|
y:
|
15
|
17
|
16
|
10
|
5
|
19
|
4
|
8
|
x:
|
159
|
163
|
165
|
162
|
158
|
160
|
165
|
167
|
168
|
170
|
y:
|
51
|
57
|
58
|
50
|
49
|
54
|
55
|
56
|
58
|
57
|
x:
|
130
|
128
|
132
|
135
|
140
|
142
|
137
|
139
|
y:
|
31
|
30
|
36
|
32
|
41
|
40
|
35
|
34
|
x:
|
212
|
214
|
205
|
220
|
225
|
214
|
218
|
y:
|
500
|
515
|
577
|
530
|
522
|
516
|
525
|
x:
|
10
|
2
|
5
|
7
|
9
|
4
|
8
|
y:
|
8
|
4
|
4
|
8
|
5
|
3
|
7
|
x:
|
40
|
37
|
90
|
85
|
67
|
75
|
80
|
52
|
80
|
y:
|
50
|
40
|
80
|
85
|
75
|
80
|
85
|
65
|
85
|
RANK CORRELATION
x:
|
15
|
32
|
25
|
30
|
35
|
20
|
19
|
22
|
27
|
31
|
y:
|
50
|
70
|
65
|
72
|
90
|
58
|
53
|
57
|
68
|
74
|
x:
|
105
|
112
|
107
|
115
|
160
|
152
|
148
|
132
|
y:
|
120
|
127
|
135
|
123
|
140
|
142
|
138
|
110
|
Year:
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
Debenture
|
97.8
|
99.2
|
98.8
|
98.3
|
98.4
|
96.7
|
97.6
|
97.1
|
Share Price
|
78.9
|
85.8
|
81.2
|
83.8
|
84.2
|
80.1
|
80.6
|
77.6
|
x:
|
12
|
15
|
13
|
20
|
15
|
14
|
19
|
13
|
21
|
18
|
y:
|
25
|
21
|
15
|
18
|
20
|
17
|
20
|
16
|
20
|
22
|
x:
|
60
|
30
|
37
|
30
|
42
|
37
|
55
|
45
|
y:
|
50
|
25
|
33
|
27
|
40
|
33
|
50
|
42
|
x:
|
56
|
37
|
65
|
60
|
54
|
51
|
40
|
70
|
y:
|
50
|
42
|
55
|
48
|
51
|
53
|
38
|
47
|
x:
|
33
|
37
|
42
|
23
|
21
|
15
|
13
|
30
|
39
|
y:
|
17
|
27
|
32
|
12
|
13
|
11
|
9
|
25
|
30
|
x:
|
52
|
33
|
47
|
65
|
43
|
33
|
54
|
66
|
75
|
70
|
y:
|
65
|
59
|
72
|
72
|
82
|
60
|
57
|
58
|
72
|
90
|
x:
|
84
|
89
|
72
|
75
|
90
|
62
|
62
|
78
|
y:
|
65
|
75
|
58
|
65
|
75
|
54
|
51
|
57
|
x:
|
101
|
113
|
83
|
109
|
101
|
97
|
83
|
95
|
90
|
117
|
y:
|
53
|
59
|
52
|
57
|
59
|
50
|
54
|
58
|
59
|
61
|
x:
|
64
|
72
|
70
|
85
|
64
|
90
|
60
|
85
|
89
|
54
|
y:
|
47
|
43
|
29
|
47
|
25
|
52
|
47
|
50
|
51
|
20
|
x:
|
90
|
88
|
90
|
76
|
88
|
62
|
98
|
90
|
70
|
76
|
y:
|
61
|
58
|
64
|
73
|
73
|
78
|
58
|
82
|
58
|
67
|
Student No:
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
Rank in A:
|
1
|
3
|
4
|
2
|
5
|
10
|
8
|
6
|
7
|
9
|
Rank in B:
|
3
|
5
|
1
|
2
|
6
|
10
|
4
|
9
|
7
|
8
|
Rank in C:
|
2
|
3
|
5
|
1
|
4
|
9
|
6
|
7
|
8
|
10
|
Candidate No:
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
Rank by Judge A:
|
7
|
6
|
5
|
8
|
3
|
1
|
2
|
4
|
Rank by Judge B:
|
6
|
8
|
4
|
7
|
1
|
2
|
4
|
5
|
Rank by Judge C:
|
4
|
5
|
6
|
7
|
3
|
1
|
2
|
8
|
Contestant No:
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
Rank by Judge X:
|
1
|
2
|
3
|
5
|
4
|
6
|
7
|
8
|
Rank by Judge Y:
|
2
|
4
|
1
|
3
|
8
|
5
|
6
|
7
|
Rank by Judge Z:
|
1
|
3
|
2
|
5
|
4
|
8
|
7
|
6
|
Age in Years:
|
Height in Centimetres
|
||||
144 – 148
|
148 – 152
|
152 – 156
|
156 – 160
|
Total
|
|
10 – 12
|
7
|
2
|
-
|
-
|
9
|
12 – 14
|
3
|
5
|
3
|
3
|
14
|
14 – 16
|
-
|
3
|
8
|
6
|
17
|
16 – 18
|
-
|
-
|
5
|
5
|
10
|
Total
|
10
|
10
|
16
|
14
|
50
|
Service in Years:
|
Salary in Rupees.
|
||||
1000-1500
|
1500-2000
|
2000-2500
|
2500-3000
|
3000-3500
|
|
0 – 5
|
5
|
2
|
-
|
-
|
-
|
5 – 10
|
3
|
3
|
6
|
-
|
-
|
10 – 15
|
-
|
3
|
4
|
-
|
-
|
15 – 20
|
-
|
-
|
4
|
5
|
6
|
20 – 25
|
-
|
-
|
-
|
3
|
6
|
Weight in Kgs:
|
Height in Centimetres
|
||||
150 – 155
|
155 – 160
|
160 – 165
|
165 – 170
|
170 – 175
|
|
50 – 54
|
2
|
2
|
-
|
-
|
-
|
54 – 58
|
1
|
1
|
2
|
-
|
-
|
58 – 62
|
-
|
-
|
3
|
4
|
-
|
62 – 66
|
-
|
-
|
1
|
3
|
3
|
66 – 70
|
-
|
-
|
-
|
1
|
2
|
Family Income in Rs:
|
Food Expenditure in percentage:
|
||||
10 – 15
|
15 – 20
|
20 – 25
|
25 – 30
|
30 – 35
|
|
1500 – 2000
|
3
|
3
|
-
|
-
|
-
|
2000 – 2500
|
2
|
2
|
3
|
-
|
-
|
2500 – 3000
|
-
|
2
|
2
|
3
|
-
|
3000 – 3500
|
-
|
-
|
3
|
2
|
2
|
3500 – 4000
|
-
|
-
|
-
|
2
|
1
|
Profits in thousands of Rs.
|
Sales in lakhs of Rs.
|
||||
50 – 60
|
60 – 70
|
70 – 80
|
80 – 90
|
90 – 100
|
|
50 – 55
|
1
|
3
|
1
|
-
|
-
|
55 – 60
|
4
|
7
|
2
|
5
|
-
|
60 – 65
|
3
|
5
|
4
|
10
|
6
|
65 – 70
|
-
|
1
|
3
|
7
|
2
|
70 – 75
|
-
|
-
|
2
|
-
|
-
|
Marks in Civics
|
Marks in History
|
||||
0 – 10
|
10 – 20
|
20 – 30
|
30 – 40
|
40 – 50
|
|
0 – 10
|
2
|
1
|
-
|
-
|
-
|
10 – 20
|
4
|
3
|
2
|
-
|
-
|
20 – 30
|
3
|
2
|
2
|
3
|
1
|
30 – 40
|
-
|
1
|
1
|
2
|
1
|
40 – 50
|
-
|
-
|
-
|
2
|
-
|
Income in Rs.
|
Savings in Rs.
|
||||
0 – 400
|
400 – 800
|
800 – 1200
|
1200 – 1600
|
1600 – 2000
|
|
2500 – 3000
|
5
|
3
|
-
|
-
|
-
|
3000 – 3500
|
3
|
4
|
4
|
-
|
-
|
3500 – 4000
|
-
|
3
|
5
|
3
|
1
|
4000 – 4500
|
-
|
-
|
3
|
2
|
2
|
4500 – 5000
|
-
|
-
|
1
|
1
|
1
|
Test Score
|
Sales in thousands of Rs.
|
|||
10 – 12
|
12 – 14
|
14 – 16
|
16 – 18
|
|
60 – 70
|
2
|
3
|
-
|
-
|
70 – 80
|
3
|
4
|
2
|
-
|
80 – 90
|
-
|
7
|
12
|
2
|
90 – 100
|
-
|
-
|
8
|
7
|