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Statistical Analysis with Software Application
LEARNING OUTCOMES
At the end of the lesson, the students should be able to:
1. Solve the value of the regression and correlation;
2. Sketch the graph of the regression equation and;
3. Determine the strength of a linear relationship between two variables.
4. Make predictions based on relationship.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
INTRODUCTION
When performing research studies, scientists often wish to know whether two variables are
related. If the variables are determined to be related, a scientist may then wish to find an equation
that can be used to model the relationship.
• Correlation is a statistical method used to determine whether a relationship between
variables exists.
• Regression is a statistical method used to describe the nature of the relationship between
variables, that is, positive or negative, linear or nonlinear.
The following questions are to be answered by using the correlation and regression test.
1. Are two or more variables related?
2. If so, what is the strength of the relationship?
3. What type of relationship exists?
4. What kind of predictions can be made from the relationship?
To answer 1 and 2, use the Linear Correlation coefficient, r
LINEAR CORRELATION COEFFICIENT, r
To determine the strength of a linear relationship between two variables, statisticians use a
statistic called the linear correlation coefficient, which is denoted by the variable r and is
defined as follows.
For the n ordered pairs (𝑥1 , 𝑦1 ), (𝑥2 , 𝑦2 ), (𝑥3 , 𝑦3 ), … , (𝑥𝑛 , 𝑦𝑛 ), the linear correlation coefficient r is
given by
n(∑ xy) − (∑ x)(∑ y)
r=
√n(∑ x 2 ) − (∑ x)2 ∙ √n(∑ y2 ) − (∑ y)2
If the linear correlation coefficient r is positive, the relationship between the variables has a
positive correlation. In this case, if one variable increases, the other variable also tends to
increase.
If r is negative, the linear relationship between the variables has a negative correlation. In this
case, if one variable increases, the other variable tends to decrease.
The closer | r | is to 1, the stronger the linear relationship between the variables.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
In your work with applications that involve the linear correlation coefficient r, it is important to
remember the following properties of r.
Properties of the Linear Correlation Coefficient
1. The linear correlation coefficient r is always a real number between –1 and 1, inclusive. In
the case in which
▪ all of the ordered pairs lie on a line with positive slope, r is 1
▪ all of the ordered pairs lie on a line with positive slope, r is –1.
2. For any set of ordered pairs, the linear correlation coefficient r and the slope of least
squares line both have the same sign.
3. Interchanging the variables in the ordered pairs does not change the value of r. Thus, the
value of r for the ordered pairs (x1 , y1 ), (x2 , y2 ), … , (xn , yn ) is the same as the value of r
for the ordered pairs (y1 , x1 ), (y2 , x2 ), … , (yn , xn ).
4. The value of r does not depend on the units used. You can change the units of a variable
from, for example, feet to inches, and the value of r will remain the same.
Size of Correlation Interpretation
0.90 to 1.00 Very high positive correlation
0.70 to 0.90 High positive correlation
0.50 to 0.70 Moderate positive correlation
0.30 to 0.50 Low positive correlation
0.10 to 0.30 Very Low positive correlation
∓ 0.00 to ∓ 10 Negligible correlation
– 0.10 to – 0.30 Very Low negative correlation
– 0.30 to – 0.50 Low negative correlation
– 0.50 to – 0.70 Moderate negative correlation
– 0.70 to – 0.90 High negative correlation
– 0.90 to – 1.00 Very high negative correlation
To answer number 3:
In a simple relationship, there are two variables—an independent variable, also called
an explanatory variable or a predictor variable, and a dependent variable, also called a
response variable.
A simple relationship analysis is called simple regression, and there is one independent
variable that is used to predict the dependent variable.
Example: A manager may wish to see whether the number of years the salespeople have been
working for the company has anything to do with the amount of sales they make.
Variables: Years of experience and amount of sales
Multiple relationship, called multiple regression, two or more independent variables are used to
predict one dependent variable.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
If the linear correlation coefficient r is positive, the relationship between the variables has a positive
correlation. A positive relationship exists when both variables increase or decrease at the same time.
If r is negative, the linear relationship between the variables has a negative correlation. In a negative
relationship, as one variable increases, the other variable decreases, and vice versa.
To answer number 4:
• Some predictions are more accurate than others, due to the strength of the relationship. That is,
the stronger the relationship is between variables, the more accurate the prediction is.
• Examples: weather forecasting, stock market analyses, sales predictions, crop predictions,
gasoline price predictions, and sports predictions.
How to run the software for Pearson r Correlation and Linear
Regression?
The yearly data have been published showing the number of releases for each of the commercial movie
studios and the gross receipts for those studios thus far. Based on these data, can it be concluded that
there is a relationship between the number of releases and the gross receipts?
No. of releases x 361 270 306 22 35 10 8 12 21
Gross receipts y 3844 1962 1371 1064 334 241 188 154 125
(million $)
1. Using Microsoft Excel, put the values in two columns as shown below.
To avoid mistakes in encoding and for data in similar format like in Problem 2: copy the data from the
worksheet and paste in Microsoft Excel. Copy again then in an empty cell, right click and look for
Transpose in Paste Options.
2. Copy and paste in Jamovi.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
3. Double-click the column header to edit the Data Variable and the measure type.
4. Under Analyses Tab, click ANOVA. Then, choose Correlation Matrix or Linear Regression. It is
recommended to choose the Linear regression but if the data exhibits the properties of non-parametric,
then the Spearman is found in Correlation Matrix.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
5. Transfer or Drag the Data as shown below. At this point, do not mind the default result. Scroll down
and check the settings.
6. Check the following boxes as seen below. Check the result of the Shapiro Wilk for the Normality Test
to determine the appropriate statistical test. Determine the necessary values to complete the table and
to come up with a sound decision and interpretation.
Correlation and Linear Regression FINAL TERM
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Statistical Analysis with Software Application
For the Descriptive Statistics, use the Exploration tab and transfer the data as shown below. Check the
needed measurements.
Correlation and Linear Regression FINAL TERM
No part of this E-module/LMS Content can be reproduced, or transported or shared to others without permission from the University.
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Statistical Analysis with Software Application
Table 1: Test of relationship between the number of releases of commercial movies and the
gross receipts
a. Hypotheses Ha: There is a significant relationship between the number of releases
of commercial movies and the gross receipts.
Ho: There is a significant relationship between the number of releases
of commercial movies and the gross receipts.
b. Level of Significance. 𝛼 = 5% = 0.05
c. Statistical test *Normality test (Shapiro Wilk)
p-value = 0.160
Interpretation: The data is normally distributed.
*Homogeneity Test (Levine’s Test)
p-value =
Interpretation:
Statistical test: Pearson r correlation
d. Complete the table.
Variables mean standard r-value t-value p-value Decision
deviation
No of releases 116 149 0.880 4.9056 0.002 0.002<0.05
Gross receipts 1,031 1,240 Significant
e. Interpretation.
There is a significant positive relationship between the number of releases and gross receipts.
Studios with more releases tend to have higher gross receipts. As the number of releases increases,
the gross receipts also increase. The line of best fit or linear regression model is y = 7.32x+181.66.
Correlation and Linear Regression FINAL TERM
No part of this E-module/LMS Content can be reproduced, or transported or shared to others without permission from the University.
