Statistics for Economics Chapter 11 | Part 4 | Correlation - Karl Pearsons Coefficient

Economics(Grade 11): Statistics for Economics Chapter 11 Part 4 Correlation

Short-cut Method 00:00:20 - 00:01:59

Example (Short-cut Method) 00:02:00 - 00:06:00

Step-Deviation Method 00:06:01 - 00:07:51

Example (Step-Deviation Method) 00:07:52 - 00:11:40

Assumptions Of Coefficient of Correlation 00:11:41 - 00:13:05
*Linear Relationship
*Casual Relationship
*Normal Distribution
*Error of Measurement

Properties of Coefficient of Correlation 00:13:06 - 00:14:23
*Coefficient of correlation lies between -1 and +1
*The coefficient of correlation is independent of the change or origin and scale of measurements
*The coefficient of correlation (r) is a measure of the linear relationship
*If two variables X and Y are independent, coefficient of correlation between them will be zero

Merits and Demerits 00:14:24
*Merits
~ Popular method
~ Degree and direction of correlation

*Demerits
~ Affected by extreme values
~ Time consuming method
~ Assumption of linear relationship
~ Possibility of wrong interpretation
~ Limited use

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