Page 300 - Statistics for Dummies
P. 300

284
                                                      5. Divide the sum by s  ∗ s .
                                                                          x
                                                                             y
                                                      6. Divide the result by n – 1, where n is the number of (x, y) pairs. (It’s
                                                        the same as multiplying by 1 over n – 1.)
                                                         This gives you the correlation, r.
                                                    For example, suppose you have the data set (3, 2), (3, 3), and (6, 4). You
                                                    calculate the correlation coefficient r via the following steps. (Note for this
                                                    data the x-values are 3, 3, 6, and the y-values are 2, 3, 4.)
                                                      1.
                                                          is 12 ÷ 3 = 4, and   is 9 ÷ 3 = 3.
                                                      2. The standard deviations are s  = 1.73 and s  = 1.00.
                                                                                              y
                                                                                  x
                                                        See Chapter 5 for step-by-step calculations.
                                                     3. The differences found in Step 3 multiplied together are: (3 – 4)(2 – 3) =
                                                        (– 1)( – 1) = +1; (3 – 4)(3 – 3) = (– 1)(0) = 0; (6 – 4)(4 – 3) = (2)(1) = +2.
                                                     Part V: Statistical Studies and the Hunt for a Meaningful Relationship
                                                     4. Adding the Step 3 results, you get 1 + 0 + 2 = 3.
                                                     5. Dividing by s  ∗ s  gives you 3 ÷ (1.73 ∗ 1.00) = 3 ÷ 1.73 = 1.73.
                                                                    x  y
                                                      6. Now divide the Step 5 result by 3 – 1 (which is 2), and you get the cor-
                                                        relation r = 0.87.
                                                    Interpreting the correlation
                                                  The correlation r is always between +1 and –1. To interpret various values of
                                                    r (no hard and fast rules here, just Rumsey’s rule of thumb), see which of the
                                                    following values your correlation is closest to:
                                                     ✓ Exactly –1: A perfect downhill (negative) linear relationship
                                                     ✓ –0.70: A strong downhill (negative) linear relationship
                                                     ✓ –0.50: A moderate downhill (negative) relationship
                                                     ✓ –0.30: A weak downhill (negative) linear relationship
                                                     ✓ 0: No linear relationship
                                                     ✓ +0.30: A weak uphill (positive) linear relationship
                                                     ✓ +0.50: A moderate uphill (positive) relationship
                                                     ✓ +0.70: A strong uphill (positive) linear relationship
                                                     ✓ Exactly +1: A perfect uphill (positive) linear relationship












                                                                                                                           3/25/11   8:13 PM
                             26_9780470911082-ch18.indd   284                                                              3/25/11   8:13 PM
                             26_9780470911082-ch18.indd   284
   295   296   297   298   299   300   301   302   303   304   305