Procedure for Computing the Correlation Coefficient:
(For Direct and Deviation from actual mean method).
1. Step – 1 Calculate the mean of two series ‘X’ ‘Y’
2. Step – 2 Calculate the deviations ‘X’ and Y in two series from their respective mean.
3. Step – 3 Square each deviations of ‘X’ and ‘ Y’ then obtain the sum of the Squared deviation
4. Step – 4 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 Σxy.
5. Step – 5 Substitute the value in the formula.