Correlation Notes(3)
Correlation Notes(3)
Assumption #1: Your two variables should be measured at the interval or ratio
level (i.e., they are continuous).
Assumption #2: There is a linear relationship between your two variables. A linear
relationship exists when two quantities/variables are proportional to each other. If
you increase one of the quantities, the other quantity either increases or decreases
at a constant rate. This linearity assumption is checked through a scatterplot (the
relationship between two variables must graph as a straight line). A scatterplot is a
graph that plots each person’s score on one variable against their score on another
variable. It visualizes the relationship between the variables.
Simple scatter: Use this option to plot values of one continuous variable against
another.
Scatter-plot matrix = This type of plot allows you to see the relationship between
all combinations of many different pairs of variables.
Non-linear Relationship Example = When you first start driving you are less
experienced and, sometimes, more reckless. As you age, you gain more experience
(and sense) and it becomes less likely that you’re involved in an accident.
However, this trend won’t continue forever. When you reach old age your eyesight
may deteriorate or your reactions may slow. Now, as you age, it becomes more
likely that you’re involved in an accident. This means the probability of an
accident has a non-linear relationship with age.
When all the points on the scatter diagram tend to lie near a smooth curve, the
correlation is said to be non-linear (curvilinear).
Assumption #3: There should be no significant outliers.
A positive r value expresses a positive relationship between the two variables (the
larger A, the larger B) while a negative r value indicates a negative relationship
(the larger A, the smaller B). A correlation coefficient of zero indicates no
relationship between the variables at all. However, r values are interpreted as
significant only when significant p value is less than .05 or .01 or .001.
Degree of Correlation
Strong correlation: If the coefficient value lies between .50 and 1, then it is said
to be a strong correlation.
Moderate correlation: If the value lies between 0.30 and 0.49, then it is said to be
a moderate correlation.
Small correlation: When the correlation coefficient value is below .30, it is called
small correlation.
An ordinal variable is a categorical variable for which the possible values are
ordered.