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Tamil Nadu Board of Secondary EducationHSC Commerce Class 12

Calculate the Karl Pearson Correlation Co-efficient for the following data Demand for Product X : 23 27 28 29 30 31 33 35 36 39 Sale of Product Y: 18 22 23 24 25 26 28 29 30 32

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Question

Calculate the Karl Pearson Correlation Co-efficient for the following data:

Demand for Product X: 23 27 28 29

30

31 33 35 36 39
Sale of Product Y: 18 22 23 24 25 26 28 29 30 32
Sum
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Solution

Sr. No. X Y (X-A) = dx (Y-A) = dy dx2 dy2 dxdy
1 23 18 −8 −8 64 64 64
2 27 22 −4 −4 16 16 16
3 28 23 −3 −3 9 9 9
4 29 24 −2 −2 4 4 4
5 30 25 −1 −1 1 1 1
6 31 26 0 0 0 0 0
7 33 28 2 2 4 4 4
8 35 29 4 3 16 9 12
9 36 30 5 4 25 16 20
10 39 32 8 6 64 36 48
N = 10 ∑X = 311 ∑Y = 257 ∑(X−A) = 1 ∑(Y-A) = (−2) ∑dx2 = 203 ∑dy2 = 159 ∑dxdy = 178

`barx = (sumX)/N = 311/10 = 31.1`

`barx = (sumY)/N = 257/10 = 25.7`

Take the assumed values A = 31 and B = 26

Therefore

dx = X − A ⇒ X − 31 and

dy = Y − A ⇒ Y − 26

`∴ r = (Nsumdxdy - (sumdx)(sumdy))/(sqrt(Nsumdx^2-(sumdx)^2)sqrt(Nsumdy^2-(sumdy)^2)`

`= (10xx178 -1xx(-2))/(sqrt(10xx203- (1)^2) xx sqrt(10xx159 -(-3)^2)`

= `r = (1780 + 2)/(sqrt(2030 - 1) * sqrt(1590 - 4)) = (1782)/(sqrt(2029*1586))`

= `r = (1782)/(sqrt(3219494)) = (1782)/(1793.17)`

r ≈ 0.9955

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Chapter 12: Introduction to Statistical Methods and Econometrics - Model Questions [Page 281]

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Samacheer Kalvi Economics [English] Class 12 TN Board
Chapter 12 Introduction to Statistical Methods and Econometrics
Model Questions | Q 36. | Page 281

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