1. Correlation Relationship between Variables

2. Statistical Relationships What is the difference between correlation and regression? Correlation: measures the strength of a certain type of relationship between two measurement variables. Regression: gives a numerical method for trying to predict one measurement variable from another.

3. Statistical Relationships versus Deterministic Relationships Deterministic: if we know the value of one variable, we can determine the value of the other exactly. e.g. relationship between volume and weight of water. Statistical: natural variability exists in both measurements. Useful for describing what happens to a population or aggregate.

4. Measuring Strength Through Correlation Correlation (or the Pearson product-moment correlation or the correlation coefficient) represented by the letter r: A Linear Relationship Indicator of how closely the values fall to a straight line. Measures linear relationships only; that is, it measures how close the individual points in a scatterplot are to a straight line.

5. What do discuss? To discuss the relationships between two variables we look at: Statistical Significance Strength through Correlation

6. Statistical Significance A relationship is statistically significant if that relationship is stronger than 95% of the relationships we would expect to see just by chance.

7. Statistical Significance What r value is statistically significant? It depends on the size of the sample. The following table indicates the lowest r value that would indicate a statistically significant relationship for a given sample size. A more complete table is in the Excel file. Critical Values for the Correlation Coefficient Number of Points95% Confidence 30.997 40.950 50.878 60.811 70.754 80.707 90.666 100.632 110.602 120.576 130.553 140.532 150.514 160.497 170.482 180.468 190.456 200.444

8. Two Warnings about Statistical Significance Even a minor relationship will achieve “statistical significance” if the sample is very large. A very strong relationship won’t necessarily achieve “statistical significance” if the sample is very small.

9. Features of the Correlation Coefficient The correlation coefficient is a number between -1 and 1. A positive correlation indicates that the variables increase together. A negative correlation indicates that as one variable increases, the other decreases. Correlation of +1 indicates a perfect linear positive relationship between the two variables; as one increases, so does the other at a constant rate (a deterministic linear relationship). It indicates the strength of the relationship and whether there is a positive or negative relationship.

10. Features of the Correlation Coefficient Correlation of –1 also indicates a perfect linear negative relationship between the two variables; as one increases, the other decreases at a constant rate. Correlation of zero could indicate no linear relationship between the two variables, or that the best straight line through the data on a scatterplot is exactly horizontal. The closer the correlation is to 1 or -1, the stronger the relationship. The closer it is to 0, the weaker the relationship. Correlations are unaffected if the units of measurement are changed. For example, the correlation between weight and height remains the same regardless of whether height is expressed in inches, feet or millimeters (as long as it isn’t rounded off).

11. Example - Verbal SAT and GPA The correlation coefficient is.485, indicating a moderate positive relationship. Scatterplot of GPA and verbal SAT score. Higher verbal SAT scores tend to indicate higher GPAs as well, but the relationship is nowhere close to being exact.

12. Example - Husbands’ and Wifes’ Ages and Heights Discuss the strength of the relationships. Are they positively or negatively correlated? Scatterplot of British husbands’ and wives’ heights (in millimeters); r =.36 Scatterplot of British wives’ and husbands’ and ages; r =.94

13. Example - Occupational Prestige and Suicide Rates Correlation of.109. There is a weak positive relationship If outlier removed r drops to.018. Plot of suicide rate versus occupational prestige for 36 occupations.