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Statistical Inference for Managers

This presentation by Imran Khan focuses on the concept of correlation, a vital statistical measure that quantifies the strength of the relationship between two variables, X and Y. The correlation coefficient, denoted as 'r', can range from -1 to +1, where values close to 1 indicate a strong positive relationship and values close to -1 indicate a strong negative relationship. The presentation includes practical examples, such as analyzing examination scores and project scores of students, with calculations for both the sample correlation coefficient and the Spearman rank correlation coefficient.

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Statistical Inference for Managers

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  1. Statistical Inference for Managers Presentation for Correlation By Imran Khan

  2. What is Correlation? It is a measure of strength of relationship between two variables X & Y. It is calculated as: r= Sample correlation coefficient =

  3. Properties of correlation coefficient • The correlation between X & Y is same as the correlation between Y & X • The correlation coefficient can take values between -1 & +1

  4. Example An instructor in a statistics course set a final examination and also required the students to do a data analysis project. For a random sample of 10 students, the scores obtained are shown in the table. Find the sample correlation between the examination and project scores. Examination 81 62 74 78 93 69 72 83 90 84 Project 76 71 69 76 87 62 80 75 92 79

  5. Spearman rank correlation • Spearman rank correlation coefficient: r=

  6. Example Students in an e-business technology course were given a written final examination as well as a project to complete as part of their final grade. For a random sample of 10 students, the scores on both the exam and the project are: Exam 81 62 74 78 93 69 72 83 90 84 Project: 76 71 69 76 87 62 80 75 92 79 Find the spearman rank correlation coefficient.

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