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Moreover, in case of data value appearing more than once, equal values will be specified their average rank.Autocorrelation(serial correlation) implies the correlation among the values of the same variables but at various times.
The value of correlation coefficient can be interpreted in the following manner: If ‘r’ is equal to 1, then there is perfect positive correlation between two values; If ‘r’ is equal to -1, then there is perfect negative correlation between two values; If ‘r’ is equal to zero, then there is no correlation between the two values.
In practical terms, the closer the value of ‘r’ to 1, the higher positive impact of FDI on GDP growth in Vietnam.
Similarly, if the value of ‘r’ is less than 0, the closer it is to – 1, the greater the negative impact of FDI on GDP growth in Vietnam.
If ‘r’ is equal to zero, then FDI is perceived to have no impact on GDP change in Vietnama within the given sample.
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The most popular forms of correlation analysis used in business studies include The Pearson product-moment correlation is calculated by taking the ratio of the sample of the two variables to the product of the two standard deviations and illustrates the strength of linear relationships.
In Pearson product-moment correlation the correlation coefficient is not robust due to the fact that strong linear relationships between the variables are not recognized.
A student is supposed to define the role and the value of the method and prove that it is important for statistics and the methodology of all sciences.
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