Methods of correlation and regression can be used in order to analyze the extent and the nature of relationships between different variables. Correlation analysis is used to understand the nature of relationships between two individual variables. For example, if we aim to study the impact of foreign direct investment FDI on the level of economic growth in Vietnam, then two variables can be specified as the amounts of FDI and GDP for the same period. Where, x and y are values of variables, and n is size of the sample. The value of correlation coefficient can be interpreted in the following manner:. The most popular forms of correlation analysis used in business studies include Pearson product-moment correlation , Spearman Rank correlation and Autocorrelation.
PhD Research Methodology | Correlation and Regression Analysis
Jump to navigation. Design Introduction and Focus — Correlational research design can be relational leading to correlation analysis and predictive leading to regression analysis. Correlational relational research design is used in those cases when there is an interest to identify the existence, strength and direction of relationships between two variables. This association cannot be used to draw conclusions with regard to cause-effect relationship between the variables. Does this mean that making more money makes you less smart or that if you do well on tests you will make less money? The answer is no. And in order to interpret the results of the analysis we need to know the context.
Correlation and Regression.pdf
Correlation is a statistical measure that helps in determining the extent of the relationship between two or more variables or factors. For example, growth in crime is positively related to growth in the sale of guns. Growth in obesity is positively correlated to growth in consumption of junk food. However, growth in environmental degradation is negatively correlated with the rate of education and awareness. A previous article explained how to perform the correlation test in SPSS software.
To illustrate how to use Correlation I would use dataset of Islamic. In this example I am interested in assessing the correlation between attitude towards Islamic banking and the Social Influence. For Pearson Correlation, SPSS provides you with a table giving the correlation coefficients between each pair of variables listed, the significance level and the number of cases. The results for Pearson correlation are shown in the section headed Correlation.