Correlation Coefficient in case of grouped Data
In the case of bivariate frequency distribution, the
coefficient of correlation is obtained as:
The regression model Y on X in deviated form is given by:
The estimated regression model:
We know that
The OLS estimate n case of bi variate frequency distribution
The correlation coefficient in bi variate data is
Practice Question
Calculate the correlation coefficient of the following bivariate
frequency distribution. Also determine the regression line Y on X.
Solution:
The standard deviation of X:
The standard deviation
of Y:
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