Statistics for Economics Chapter 11 | Part 3 | Correlation - Karl Pearsons Coefficient

Economics (XIth Grade) | Statistics for Economics : Chapter 11 Part 3 Correlation

Karl Pearson’s Coefficient of Correlation 00:00:20 - 00:01:34
*This method was introduced by British Statistician 'Karl Pearson'.
*It is a mathematical method of calculation the coefficient of Correlation
*It is based on Arithmetic Mean and Standard Deviation
*Coefficient of Correlation is denoted by 'r'.

Features of Karl Pearson’s coefficient of Correlation 00:01:35 - 00:03:24
*Knowledge of direction of Correlation
*Size of Correlation between variables
*Ideal measure of Correlation
*Indicates Magnitude of Correlation

Values of Correlation Coefficient 00:01:35 - 00:03:24
* When r= +1, It means there is perfect Positive Correlation
* When r= -1, It means there is perfect Negative Correlation
*When r= 0, It means there is no relationship between two variables.

Methods of Calculating 00:03:25 - 00:03:54
*Actual Mean method
*Direct method
*Short-cut method
*Step-Deviation method

Actual Mean Method 00:03:54 - 00:05:01

Example (Actual Mean Method) 00:05:02 - 00:10:10

Direct Method 00:10:11 - 00:11:29

Example (Direct Method) 00:11:30