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Karl Pearson’s Product-Moment Correlation Coefficient or simply Pearson’s Correlation Coefficient for short, is one of the important methods used in Statistics to measure Correlation between two variables.

A few words about Karl Pearson. Karl Pearson was a British mathematician, statistician, lawyer, and eugenicist. He established the discipline of mathematical statistics. He founded the world’s first statistics department At the University of London in the year 1911. Karl Pearson along with his colleagues Weldon and Galton founded the journal “Biometrika” whose object was the development of statistical theory.

The Correlation between two variables X and Y, which are measured using Pearson’s Coefficient, gives the values between +1 and -1. When measured in population Pearson’s Coefficient is designated the value of the Greek letter rho (ρ). But, when studying a sample, it is designated the letter r. It is therefore sometimes called Pearson’s r. Pearson’s coefficient reflects the linear relationship between two variables. As mentioned above if the correlation coefficient is +1 then there is a perfect positive linear relationship between variables, and if it is -1 then there is a perfect negative linear relationship between the variables. And 0 denotes that there is no relationship between the two variables.

The degrees -1, +1, and 0 are theoretical results and are not generally found in normal circumstances. That means the results cannot be more than -1, +1. These are the upper and lower limits.

## Pearson’s Coefficient computational formula

Sample question: compute the value of the correlation coefficient from the following table:

 Subject Age x Weight Level y 1 43 99 2 21 65 3 25 79 4 42 75 5 57 87 6 59 81

Step 1: Make a chart. Use the given data, and add three more columns: xy, x2, and y2.

 Subject Age x Weight Level y xy x2 y2 1 43 99 2 21 65 3 25 79 4 42 75 5 57 87 6 59 81

Step 2: Multiply x and y together to fill the xy column. For example, row 1 would be 43 × 99 = 4,257

Step 3: Take the square of the numbers in the x column, and put the result in the x2 column

 Subject Age x Weight Level y xy x2 y2 1 43 99 4257 1849 2 21 65 1365 441 3 25 79 1975 625 4 42 75 3150 1764 5 57 87 4959 3249 6 59 81 4779 3481

Step 4: Take the square of the numbers in the y column, and put the result in the y2 column.

Step 5: Add up all of the numbers in the columns and put the result at the bottom.2 column. The Greek letter sigma (Σ) is a short way of saying “sum of.”

Subject
Age x
Weight Level y
xy
x2
y2
1
43
99
4257
1849
9801
2
21
65
1365
441
4225
3
25
79
1975
625
6241
4
42
75
3150
1764
5625

## 5

57
87
4959
3249
7569
6
59
81
4779
3481
6561
Σ
247
486
20485
11409
40022

Step 6: Use the following formula to work out the correlation coefficient.

The answer is: 1.3787 × 10-4

The range of the correlation coefficient is from -1 to 1. Since our result is 1.3787 × 10-4, a tiny positive amount, we can’t draw any conclusions one way or another.

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