1. Copyright © Texas Education Agency, 2012. All rights reserved. Linear Correlation Statistics & Risk Management 1 Copyright © Texas Education Agency, 2012. All rights reserved.

2. 2 “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Copyright © 2012 Texas Education Agency. All rights reserved. “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

4. Copyright © Texas Education Agency, 2012. All rights reserved. Relationships 4

5. Would you like to know……. Is there a correlation between your paycheck and your education? Is there a correlation between your paycheck and your education? Are what you eat and your health correlated? Are what you eat and your health correlated? Does you age make a difference in your car insurance rates? Does you age make a difference in your car insurance rates? Does the number of tickets effect your car insurance rates? Does the number of tickets effect your car insurance rates? 5

6. Copyright © Texas Education Agency, 2012. All rights reserved. Causal? If there is a correlation…. do we know if one causes the other? If there is a correlation…. do we know if one causes the other?

7. Copyright © Texas Education Agency, 2012. All rights reserved. Correlation Is a calculated value (1.0 to -1.0) that demonstrates a relationship (or lack of) between two sets of data. ABCDEF 36493218 81651842 122412.51535 3678446 71462491 A/B = 1.0 C/D =.234 E/F = -1.0 Explain the correlations or lack of correlations. 7

8. Copyright © Texas Education Agency, 2012. All rights reserved. Excel Formula 8 =CORREL(C1:C5,D1:D5) This function uses two lists: Factor One (Column C) and Factor Two (Column D)

9. Copyright © Texas Education Agency, 2012. All rights reserved. Excel Charting 9 Create Two Columns Create Two Columns Use a Scatter Chart Use a Scatter Chart

10. Copyright © Texas Education Agency, 2012. All rights reserved. Stress vs. Blood Pressure 10

11. Copyright © Texas Education Agency, 2012. All rights reserved. Age vs. Weight 11