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By Admin 24 Jun, 2025

TalentBlazer : UGCNET/JRF preparation paper II - Commerce : Understanding Correlation and Regression of Two Variables – UGC NET Guide

When it comes to preparing for the UGC NET exam, especially in subjects like Economics, Education, Psychology, and Commerce, Correlation and Regression Analysis are crucial topics under Research Methodology and Statistics. Whether you're a first-time aspirant or someone revising these concepts, a clear understanding of correlation and regression will enhance both your theoretical and applied knowledge. Let’s break down these important concepts in a simple, exam-oriented manner.



What is Correlation?

Correlation refers to the statistical relationship between two variables. It tells us whether an increase or decrease in one variable will result in an increase or decrease in the other.

Key Features:

  • Range: The correlation coefficient (denoted by r) ranges from -1 to +1.
  • Types:
    • Positive Correlation: Both variables move in the same direction. Example: Height and weight.
    • Negative Correlation: Variables move in opposite directions. Example: Number of hours spent watching TV and academic performance.
    • Zero Correlation: No relationship between the variables.

Methods to Measure Correlation:

  1. Pearson’s Product Moment Correlation Coefficient (r):
    • Measures linear correlation.
    • Suitable for interval or ratio scale variables.
    • Formula:

 

  1. Spearman’s Rank Correlation:
    • Used when data is ordinal or not normally distributed.
    • Useful for non-linear relationships.

What is Regression?

Regression is a statistical method used to predict the value of one variable based on another. It identifies the cause-and-effect relationship.

Key Features:

  • Dependent Variable (Y): The variable we want to predict.
  • Independent Variable (X): The variable used to make the prediction.
  • Regression Line: A straight line that best fits the data points.

 

Types of Regression:

  1. Simple Linear Regression:
    • Examines the relationship between one independent and one dependent variable.
    • Equation:

Where:

      • Y = Predicted value
      • a = Intercept
      • b = Slope or regression coefficient
      • X = Independent variable
  1. Multiple Regression (Beyond UGC NET basics):
    • More than one independent variable.

Correlation vs Regression: Know the Difference

Feature

Correlation

Regression

Purpose

Measures strength and direction of relation

Predicts value of one variable from another

Variables

Symmetric (X & Y are equal)

Asymmetric (Y depends on X)

Coefficient Value

Between -1 and +1

Can take any real number

Interpretation

Degree of relationship

Causal relationship



UGC NET Tips

  • Expect MCQs based on formulae, interpretation of coefficients, and distinguishing between correlation and regression.
  • Practice calculations: Use sample datasets to calculate r and regression lines manually.
  • Understand when to apply Pearson vs Spearman correlation.
  • Study scatter plots – useful for visual interpretation questions.

Sample Question

Q. If the correlation coefficient between X and Y is +0.85, it indicates:
a) A strong positive relationship
b) A weak negative relationship
c) No relationship
d) A perfect relationship

Answer: a) A strong positive relationship



Final Words

In UGC NET, mastering Correlation and Regression not only boosts your score in Paper 1 (Research Aptitude) but also deepens your grasp of data analysis for Papers 2 and 3. Practice numerical questions, understand the conceptual differences, and make sure you revise definitions and formulas.

 

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