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LINEAR CORRELATION — Statistics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceStatisticsLINEAR CORRELATION3 Marks
Question
Write the merits and limitations of Karl Pearson's method.
✓

Answer

  • Following are the merits and limitations of Karl Pearson’s method :
  • Merits :
    • This is the most popular method of measuring correlation between two variables.
    • The type (nature) as well as the degree of relationship between two variables can be known by this method.
    • Calculation of correlation coefficient between two variables depend on the mere recipients.
    • If the data of two correlated variables is given in the form of bivariate table then this is the only method to calculate correlation coefficient.
  • Limitations :
    • This method is relatively tough in context of calculation.
    • Deep knowledge of mathematics is required for the correlation coefficient between two variables.
    • The value of correlation coefficient is highly affected by the extreme (too large or too small) observations.
    • It depends on the assumption that two variables under consideration have linear relationship.
    • If the interpretation of correlation coefficient between two variables is not done carefully then there is a possibility of misconception regarding the relation between two variables.

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