from an assumed mean of y

Procedure for Computing the Correlation Coefficient: (For Direct and Deviation from actual mean method).  Step- Calculate the mean of two series ‘X’ ‘Y’  Step- Calculate the deviations ‘X’ and Y in two series from their respective mean. Introduction to Statistical Methods and Econometrics  Step- Square each deviation of ‘X’ and ‘Y’ then obtain the sum of the Squared deviation, That is and  Step- Multiply each deviation under X with each deviation under Y and obtain the product of ‘xy’. Then obtain the sum of the product of X,Y.

Then obtain the sum of the product of x,y is ∑xy.  Step- Substitute the value in the formula. Formula of Karl Pearson’s Coefficient of Correlation - Ungrouped Data. Direct Method Indirect Method Using the Variables as it is Actual Mean deviation method r = ∑ x ∑ y r =