Question

In: Statistics and Probability

CHAPTER 6: CORRELATION Key Terms ---------------------------------------------------------------------------------------------------------------------------- Positive relationship --- Occurs in so far as pairs of...

CHAPTER 6: CORRELATION

Key Terms

----------------------------------------------------------------------------------------------------------------------------

Positive relationship --- Occurs in so far as pairs of observations tend to occupy similar relative positions in their respective distribution.

Negative relationship --- Occurs in so far as pairs of observations tend to occupy dissimilar relative positions in their respective distribution.

Scatterplot --- a graph containing a cluster of dots that represents all pairs of observations.

Person correlation coefficient --- A number between –1 and +1 that describes the linear relationship between pairs of quantitative variables.

Linear relationship --- A relationship that can be described with a straight line.

Curvilinear relationship --- A relationship that can be described with a curved line.

Correlation coefficient (r) --- A number between –1 and +1 that describes the relationship between pairs of variables

Correlation matrix --- Table showing correlations for all possible pairs of variables.

Text Review

In previous chapters, we have examined individual data sets representing collections of records or observations of some characteristic that varied among individuals (e.g., height, weight, and IQ scores, or popping time for kernels of corn and average burning time for light bulbs). In statistics, since the values of these characteristics vary among individuals, they are commonly referred to as variables. In chapter 9, we will examine relationships between two (dependent) variables. Therefore, we will see pairs of observations. Please refer to the chart of “Guidelines for Selecting the Appropriate Hypothesis Test,” which is located at the inside page of the book cover. To understand the type (s) of data better, please read Levels of Measurement in Appendix B (p. 483 to 489).

            When relative high values of one variable are paired with relatively high values of the other variable, and low values are paired with low values, the relationship is (1)_____________________.

Another way to think of this is that values of one variable increases as values of the other increase, while values of one variable decrease as values of the other decrease. An example of a positive relationship between two variables would be study time and performance in statistics class. As study time increases, performance in class will also increase. Thus, relatively high values of each variable are paired and relatively low values of each are paired.

            When pairs of observations occupy dissimilar and opposite relative positions in their respective distributions, the relationship is (2) _______________________. An example of a negative relationship would be auto gas mileage and horsepower. As horsepower is increased, gas mileage should decrease. Conversely, when horsepower is decreased, gas mileage should increase.

            It may occur to you that certain variables may exist which would not be related either positively or negatively. This happens to be true. Consider, for example, hat size and IQ. Pairs of these variables would not occupy either similar or dissimilar positions in their respective distributions. If the pairs were graphed on a scatterplot, no pattern would appear. These variables would be said to have no relationship. A calculated correlation coefficient for the two variables would be near zero.

            The graph that shows the relationship between variables as a cluster of dots is called a (3)_____

______________. The pattern formed by the dot cluster is significant. If the cluster has a slope from upper right to lower left, it depicts a (4)______________________ relationship. If the slope is from upper left to lower right, the relationship is (5)___________________________. A dot cluster that lacks any apparent slope reflects (6)__________________________. The more closely a dot cluster approximates a straight line, the (7)________________________ the relationship. When a relationship can be described with a straight line, it is described as (8)_________________________. When the dot cluster forms a curved line, the relationship is said to be (9)___________________________.

            The relationship between two variables that represent quantitative data is described by a correlation coefficient and designated by the symbol (10)__________. The correlation coefficient ranges in value from (11)_________________ to (12)________________. The sign of r indicates whether the relationship is (13)_______________ or (14)___________________. The value of r

indicates the (15)__________________________ of the relationship. The correlation coefficient is referred to as the (16)___________________ and was named after the British scientist Karl Pearson.

            Interpretation of r is related to the direction and strength of the correlation. The direction, either (17)___________________ or (18)___________________, is indicated by the sign of the correlation coefficient. The strength is reflected by the (19)_____________________ of r. An r value of .50 or more in either direction is typical of important relationships in most areas of behavioral and educational research. The value of r cannot be interpreted as a proportion or percent of some perfect relationship.

            The Pearson r can be calculated using z score formula, but this is never actually done in practice, partly because of the extra effort required to convert the original data into z scores. The value of the z score formula lies more in aiding with understanding of correlation. The correlation coefficient is actually calculated using the computation formula.

            One important concept to keep in mind is that a correlation coefficient never provides information about cause and effect. Cause and effect can only be proved by (20)_________________.

            There are other types of correlation coefficients designed for use in various situations. For example, when the data consists of ranks, a (21)________________________ correlation is used. When one variable is quantitative and the other is qualitative, the result is a (22)__________________ correlation coefficient. If both variables represent ordered qualitative data, the resulting correlation coefficient is called (23)__________________________.

            When every possible pairing of variables is reported, a correlation (24)___________________ is produced. A correlation matrix is particularly useful when many variables are being studied.

Solutions

Expert Solution

Answer:

(1) Positive relationship Another way to think of this is that values of one variable increases as values of the other increase, while values of one variable decrease as values of the other decrease. An example of a positive relationship between two variables would be study time and performance in statistics class. As study time increases, performance in class will also increase. Thus, relatively high values of each variable are paired and relatively low values of each are paired.

            When pairs of observations occupy dissimilar and opposite relative positions in their respective distributions, the relationship is positive relation ship.

2) Negative relation ship

An example of a negative relationship would be auto gas mileage and horsepower. As horsepower is increased, gas mileage should decrease. Conversely, when horsepower is decreased, gas mileage should increase.

            It may occur to you that certain variables may exist which would not be related either positively or negatively. This happens to be true. Consider, for example, hat size and IQ. Pairs of these variables would not occupy either similar or dissimilar positions in their respective distributions. If the pairs were graphed on a scatterplot, no pattern would appear. These variables would be said to have no relationship. A calculated correlation coefficient for the two variables would be near zero.

3) The graph that shows the relationship between variables as a cluster of dots is called a Scatter Plot. The pattern formed by the dot cluster is significant. If the cluster has a slope from upper right to lower left, it depicts a (4)Positive relationship. If the slope is from upper left to lower right, the relationship is

(5) Negative Relationship . A dot cluster that lacks any apparent slope reflects

(6)No -correlation. The more closely a dot cluster approximates a straight line, the

(7) Linear the relationship. When a relationship can be described with a straight line, it is described as

(8)Linear Relationship. When the dot cluster forms a curved line, the relationship is said to be

9) Curvlinear The relationship between two variables that represent quantitative data is described by a correlation coefficient and designated by the symbol

10) r The correlation coefficient ranges in value from

11) -1 to (12)_____+1___________. The sign of r indicates whether the relationship is

13) Negative or

14) Positive .The value of r indicates the

15) Linearity of the relation ship .The correlation coefficient is reffered to as the

16) Pearson correlation coefficient and was named afer the british scientist karl pearson. Interpretation of r is related to the direction and strength of the correlation. The direction, either

17) Positive or

18) neagtive is indicated by the sign of the correlation coefficient. Te strength is reflected by the

19) Linear Relationship of r . An r value of 0.50 or more in either direction is typical of important

relationships in most areas of behavioral and educational research. The value of r cannot be interpreted as a proportion or percent of some perfect relationship.

            The Pearson r can be calculated using z score formula, but this is never actually done in practice, partly because of the extra effort required to convert the original data into z scores. The value of the z score formula lies more in aiding with understanding of correlation. The correlation coefficient is actually calculated using the computation formula.

            One important concept to keep in mind is that a correlation coefficient never provides information about cause and effect. Cause and effect can only be proved by

(20) Simple Linear Regression Analysis There are other types of correlation coefficients designed for use in various situations. For example, when the data consists of ranks, a

(21)Spear man correlation is used. When one variable is quantitative and the other is qualitative, the result is a

22) Odds Ratio correlation coefficient. If both variables represent ordered qualitative data, the resulting correlation coefficient is called

23) Goodman- Kruskal Gamma
When every possible pairing of variables is reported, a correlation.

24) Matrix is produced. A correlation matrix is particularly useful when many variables are being studied.


Related Solutions

Post pairs of variables that exhibit positive correlation, negative correlation and no correlation. Could any of...
Post pairs of variables that exhibit positive correlation, negative correlation and no correlation. Could any of the proposed correlated variables be the result of causation? How could an experiment be designed to establish causation? Would it be ethical to do such an experiment? What percentage of the variation in the response variable do you think can be explained by the predictor variable? Do you think there are any lurking variables in your situation? Sample Student Response Positive Correlation: rain and...
Below are 6 important terms from the course so far.  In your own words and in complete...
Below are 6 important terms from the course so far.  In your own words and in complete sentences, please identify four of the terms and explain each term's significance to the story of American history. Be as specific as possible. The Pueblo Rebellion The Great Awakening The Middle Passage The Spanish Mission System James Oglethorpe The Stamp Act of 1765
Define the following pairs of terms and explain the similarity, difference or relationship between the terms:...
Define the following pairs of terms and explain the similarity, difference or relationship between the terms: a) Depreciation and devaluation; b) Currency crisis and international financial crisis; c) Internal balance and external balance; d) Debt rescheduling and debt forgiveness; e) Hard peg and dollarization; f) Gold standard and fixed exchange rate; g) Policy instruments and policy targets; h) Country risk and currency risk
Define the following pairs of terms and explain the similarity, difference or relationship between the terms:...
Define the following pairs of terms and explain the similarity, difference or relationship between the terms: Expenditure changing and switching policies Gold standard and gold exchange standard
For each of the following pairs of variables, would you expect a strong negative/positive correlation, a...
For each of the following pairs of variables, would you expect a strong negative/positive correlation, a moderate negative/positive correlation, a weak negative/positive correlation, other association or scattered. 1. The age of a used car and it’s price. 2. The weight of a new car and it’s overall miles per gallon rating. 3. The height of a person and the height of the persons father. 4. The height and IQ of a person.
what are the key historical event that have shaped the accounting profession so far
what are the key historical event that have shaped the accounting profession so far
Define four (4) of the following pairs of terms and explain the similarity, difference or relationship...
Define four (4) of the following pairs of terms and explain the similarity, difference or relationship between them: (a) The current account and the capital and financial account; (b) Direct investment and portfolio investment; (c) Spot transaction and forward transaction (d) Covered interest arbitrage and uncovered interest arbitrage
Fully explain, identify, and/or discuss the relationship between each of the following pairs of terms: A....
Fully explain, identify, and/or discuss the relationship between each of the following pairs of terms: A. Capital intensive and labor intensive B. Economies of scale and the LRAC curve C. Short run and long run D. Negative marginal returns and total output E. Law of Diminishing Returns
Matching Key Terms and Descriptions Terms relating to concepts discussed in this chapter along with descriptions...
Matching Key Terms and Descriptions Terms relating to concepts discussed in this chapter along with descriptions of the terms are included in the following two lists. Match each term, 1 through 15, with the most appropriate description a through o. Terms Description of Terms Answerabcdefghijklmno 1. Petty Cash a. Measure of how often receivables are collected during the year. Answerabcdefghijklmno 2. Compensating balance b. A schedule that shows the correct cash balance for both the bank and the company. Answerabcdefghijklmno...
So far, has the president's revision of America's tax system having a positive/negative impact on the...
So far, has the president's revision of America's tax system having a positive/negative impact on the U.S economy? Please make substantive comments. Please answer ASAP!
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT