Audit and economical analysis

Table 27

Matrix of double correlation coefficients

Indicator	Y	x1	x2	x3	x4	x5
Y	1
x 1	0.75	1
x 2	0.73	0.34	1
x 3	0.74	0.29	0.40	1
x 4	-0.51	-0.33	-0.46	0.45	1
x 5	0.72	0.40	0.22	0.36	0.37	1

However, it should be noted that the correlation coefficients were obtained as a result of other factors. The correlation coefficients are the coefficient of correlation between them to obtain the purely qualitative characteristics of the interconnectedness between the two factors .

Table 28

Matrix of correlation coefficients

Indicator	Y	x1	x2	x3	x4	x5
Y	1
x1	0.59	1
x2	0.48	-0,136	1
x3	0.39	0.019	0.003	1
x4	-0,36	0.090	-0,14	-0,14	1
x5	0.31	0.098	0.16	0.48	0,082	1

 

When compared with the correlation coefficients of private and double coefficients, the effectiveness of other factors on the relationships between factors of efficiency and correlation is considerable: correlation coefficients are lower than the coefficients . Factors in this correlation model are indicative of not only indirect, but also indirect effects. Therefore, after the removal of the defective factors, a little closer contact was formed. The effect of the negative effects on the opposite direction was closely intertwined.

For these reasons, not only the amount of correlation coefficient varies, but the direction of the connection may generally be correct, in contrast, may be reversed or vice versa. It can be understood that, while computing the correlation coefficients, the interrelationships with other factors will be taken into consideration while studying the interconnectedness of the results and factors. For example, if the growth rate of labor exceeds the rate of payment, the higher the level of remuneration, the more profits. Therefore, there is a link between the overall profitability rate and the salary level. If we increase the labor payment without changing labor productivity and other factors, then profitability will decrease,ie the correlation coefficient is minus.

Thus, it is possible to get an idea of ​​the correlation coefficients of direct and common occurrences, which are studied by the coefficients of correlation. Correlation coefficients, which characterize the interactions between the factors are also important. As noted, the correlation model will be selected independently of one another. If the correlation coefficient of two factors is greater than 0.85, one should be excluded from the model. The correlation coefficients' matrix can be concluded that the factors included in this model are not closely interconnected.

It is important to note the correlation coefficients of correlation coefficients depending on the size of choice . As you know, the decrease in the number of observations decreases the reliability of the correlation coefficient or increases the reliability of the correlation coefficient with increased observations.

The significance of the correlation coefficient is verified by the criterion's criterion      

where - is the average square error of the correlation coefficient, determined by the following formula 

If the calculated value of t is greater than the value in the table then the correlation coefficient is significant. The value of the table in T is found in the Styüent criteria scale table. This includes the degree of freedom (V=n-1)  and the degree of probability (in economic calculations, usually 0.05 or 0.001). In our example, the number of degrees of freedomis n-1=40-1=39 equal. Reliable probability is  P=0.05t=2.02equal. Since T is all t the table a large, reliable communication between the indicators and the resulting factor, the correlation coefficient magnitude is significant .