Page 201 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II Dilfraz Singh, Lovely Professional University

Notes Unit 10: Correlation

CONTENTS
Objectives
Introduction
10.1 Correlation
10.1.1 Scatter Diagram
10.2 Types of Correlation
10.2.1 Positive Correlation

10.2.2 Negative Correlation
10.2.3 No Correlation
10.3 Partial Correlation
10.4 Multiple Correlations
10.5 Summary
10.6 Keywords
10.7 Review Questions
10.8 Further Readings

Objectives

After studying this unit, you will be able to:

 Learn about the concept of correlation;
 Identify the types of correlation;

 Explain the Karl Pearson's coefficient;
 Discuss the partial correlation;
 Describe the multiple correlation.

Introduction

Marketing research data analysis is a blend of statistics, psychology, information technology
and art. The professional marketing researcher is not expected to have a complete understanding
of all the techniques of data analysis, but is expected to manage the blending of these disciplines
in order to develop and organize a complete analysis of the data that satisfies the information
requirements of the project. Managers of today often need to understand and make decisions
depending upon the numerical data on two or more variables simultaneously. For example,
(i) Cost of production and volume of production,
(ii) Expenditure on Advertising and Sales of a Product,
(iii) Number of Vehicles on Road and Number of Accidents,
(iv) Number of Colleges offering MBA Programme and number of MBA Graduates,
(v) Number of Counters at an e - Seva Kendra and the waiting time of customers
(vi) Number of Telephone calls and Rate per Call and so on.

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