Measures of
Association
McGraw-Hill/Irwin
18-2
Learning Objectives
Understand . . .
How correlation analysis may be applied to
study relationships between two or more
variables
The uses, requirements, and interpretation of the
product moment correlation coefficient.
How predictions are made with regression
analysis using the method of least squares to
minimize errors in drawing a line of best fit.
18-3
Learning Objectives
Understand . . .
How to test regression models for linearity
and whether the equation is effective in
fitting the data.
Nonparametric measures of association
and the alternatives they offer when key
assumptions and requirements for
parametric techniques cannot be met.
18-4
40
18-5
18-6
Biserial
Partial correlation
Multiple correlation
18-7
Kendalls tau b
Kendalls tau c
Somerss d
Spearmans rho
18-8
Cramers V
Contingency coefficient C
Lambda
Uncertainty coefficient
Kappa
Agreement measure
18-9
18-10
18-11
Scatterplots of Relationships
18-12
Scatterplots
18-13
18-14
Interpretation of Correlations
X
X causes
causes Y
Y
Y
Y causes
causes X
X
X
X and
and Y
Y are
are activated
activated by
by
one
one or
or more
more other
other variables
variables
X
X and
and Y
Y influence
influence each
each
other
other reciprocally
reciprocally
18-15
Artifact Correlations
18-16
Interpretation of Coefficients
18-17
18-18
18-19
Concept Application
X
Average Temperature
(Celsius)
Y
Price per Case
(FF)
12
2,000
16
3,000
20
4,000
24
5,000
Mean =18
Mean = 3,500
18-20
18-21
18-22
18-23
18-24
18-25
18-26
Y is completely unrelated to X
and no systematic pattern is evident
There are constant values of
Y for every value of X
The data are related but
represented by a nonlinear function
18-27
Components of Variation
18-28
F Ratio in Regression
18-29
Coefficient of Determination: r2
18-30
18-31
18-32
18-33
18-34
Panel x
Psychologist y
d2
1
2
3
4
5
6
7
8
9
10
3.5
10.0
6.5
2.0
1.0
9.0
3.5
6.5
8.0
5.0
6.0
5.0
8.0
1.5
3.0
7.0
1.5
9.0
10.0
4.0
-2.5
5.0
-1.5
.05
-2
2.0
2.0
-2.5
-2
1.0
6.25
25.00
2.52
0.25
4.00
4.00
4.00
6.25
4.00
_1.00_
57.00
.
18-35
Key Terms
Artifact correlations
Bivariate correlation
analysis
Bivariate normal
distribution
Chi-square-based
measures
Contingency
coefficient C
Cramers V
Phi
Coefficient of
determination (r2)
Concordant
Correlation matrix
Discordant
Error term
Goodness of fit
lambda
18-36
Pearson correlation
coefficient
Prediction and confidence
bands
Proportional reduction in
error (PRE)
Regression analysis
Regression coefficients
18-37
Scatterplot
Simple prediction
tau