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X UNIVARIATE
Poisson Distribution
DATA
ANALYSES
Normal Distribution
X, Y ASSOCIATION,
BIVARIATE DATA ANALYSES INTER-
RELATIONSHIP,
X1, X2 , X3 , ……….. , Xn INTRA-
MULTIVARIATE RELATIONSHIP
DATA ANALYSES
BIVARIATE DATA ANALYSES
Association - CORRELATION
COEFFICIENT
•Is there an association between market share and size of sales force
where hard selling is concerned?
• -1 ≤ r ≤ 1
• r is an absolute number
• r is a symmetric measure of association
• r measures the strength of LINEAR relationship
• r measures the direction of LINEAR relationship
x2 + y2 = 27
The formula for
correlation
coefficient
Example:-
X Y
4 2
5 5
3 6
75 •Scatter Plot
Y 70
•Scatter diagram
65
60 •Scattergram
55
50
45
40
35
30
30 40 50 60 70 80
X
X1 = a - bX2
X2 = c - dX1
X1
X1 X2 X3 X4 X5 X6 X7 X8 X9
75
70
65 r = 0.827
60
55
50
45
40 r = 0.027
35
30
30 40 50 60 70 80
MULTIVARIATE DATA ANALYSES
PARTIAL CORRELATION COEFFICIENT
A B
D C
rAB . C
rAB . CD
PARTIAL CORRELATION COEFFICIENT
♦ Temperature affects both rainfall and yield of crop; how does one
find the true relation between rainfall and yield of crop?
=> r12.3 = - 0.0357 => r12 = 0.61 is not the true picture.
=> r12.3 = 0.9386 => Sales and advertising expenditure are related;
r12 = 0.9361 This relation is NOT due to the effect of size of
sales force on each of them