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91Ó°ÊÓ

For a sample data set on two variables, the value of the linear correlation coefficient is (close to) zero. Does this mean that these variables are not related? Explain.

Short Answer

Expert verified
No, a zero correlation coefficient doesn't necessarily mean that the two variables aren't related. It only suggests that there is no linear relationship between the two variables, however, they may still be related in a non-linear way.

Step by step solution

01

Understand Correlation

Correlation is a statistical measure that expresses the extent to which two variables are linearly related. It's a value between -1 and 1 where -1 indicates a perfect negative linear relationship, 1 indicates a perfect positive linear relationship and 0 indicates no linear relationship.
02

Analyzing a Zero Correlation Coefficient

If the correlation coefficient is close to zero, it means that there is no LINEAR relationship between the two variables. It suggests that knowing the value of one variable will not help predict the value of the other variable.
03

Other Possible Types of Relationships

A correlation coefficient close to zero doesn't necessarily mean that there isn't any relationship between the two variables. There could be a non-linear relationship which correlation analysis does not detect. It's highly recommended to study the scatter plot of the data.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Statistical Measure
In the world of statistics, measures are tools that help us understand data relationships. One such tool is the correlation coefficient, a statistical measure that describes the linear relationship between two variables.
The linear correlation coefficient, often denoted as "r", is a numerical value ranging from -1 to 1. When "r" is -1, we observe a perfect negative linear relationship, indicating that as one variable increases, the other decreases consistently. Conversely, when "r" is 1, the variables have a perfect positive linear relationship, meaning they increase simultaneously in proportion.
A zero correlation coefficient implies no linear relationship – a crucial distinction. However, this measure speaks solely to linear connections and not other forms of relationships that might exist.
Linear Relationship
A linear relationship is characterized by a straight-line connection between two variables. In such a relationship, when you plot the data points on a graph, they lie roughly along a straight line.
The equation of this line can be represented as \( y = mx + c \), where \(m\) denotes the slope and \(c\) the y-intercept. The slope \(m\) represents the rate of change in \(y\) for each unit change in \(x\), simplifying the understanding of how the variables interact.
In the context of a positive linear relationship, as one variable increases, the other does as well. In a negative linear relationship, one variable decreases as the other increases. It’s this kind of direct, consistent relationship that the linear correlation coefficient measures.
Non-Linear Relationship
Not all relationships between variables are linear. In non-linear relationships, variables interact in more complex ways, forming curves or other non-straight line patterns.
For example, consider a quadratic relationship where one variable might change as the square of another variable – like \( y = ax^2 + bx + c \). These relationships can be parabolic, exponential, or logarithmic, among other forms.
Importantly, a linear correlation coefficient of zero or near zero does not rule out such relationships. It's crucial to explore beyond linear analysis, as significant connections may still exist between the variables. This is why data visualization is often necessary.
Scatter Plot Analysis
Scatter plot analysis is an excellent method for assessing the type of relationship between variables. A scatter plot depicts data points for pairs of variables, allowing an initial visual analysis to determine potential relationships.
When we construct a scatter plot, we can observe whether the data points approximate a linear trend or display some other form, such as a curve or cluster. This graphical representation can reveal non-linear patterns undetected by the correlation coefficient.
Here’s a tip: if the data points form a recognizable pattern, even if it's not a straight line, consider calculating other statistical measures or fitting non-linear models to better capture the relationship between the variables.

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Most popular questions from this chapter

Construct a \(99 \%\) confidence interval for the mean value of \(y\) and a \(99 \%\) prediction interval for the predicted value of \(y\) for the following. a. \(\hat{y}=3.25+.80 x\) for \(x=15\) given \(s_{e}=.954, \bar{x}=18.52, \mathrm{SS}_{x x}=\) \(144.65\), and \(n=10\) b. \(\hat{y}=-27+7.67 x\) for \(x=12\) given \(s_{e}=2.46, \bar{x}=13.43, \mathrm{SS}_{x x}=\) \(369.77\), and \(n=10\)

Will you expect a positive, zero, or negative linear correlation between the two variables for each of the following examples? a. SAT scores and GPAs of students b. Stress level and blood pressure of individuals c. Amount of fertilizer used and yield of corn per acre d. Ages and prices of houses e. Heights of husbands and incomes of their wives

The following data give the ages (in years) of husbands and wives for six couples. $$ \begin{array}{l|cccccc} \hline \text { Husband's age } & 43 & 57 & 28 & 19 & 35 & 39 \\ \hline \text { Wife's age } & 37 & 51 & 32 & 20 & 33 & 38 \\ \hline \end{array} $$ a. Do you expect the ages of husbands and wives to be positively or negatively related? b. Plot a scatter diagram. By looking at the scatter diagram, do you expect the correlation coefficient between these two variables to be close to zero, 1, or \(-1\) ? c. Find the correlation coefficient. Is the value of \(r\) consistent with what you expected in parts a and b? d. Using a \(5 \%\) significance level, test whether the correlation coefficient is different from zero.

An economist is studying the relationship between the incomes of fathers and their sons or daughters. Let \(x\) be the annual income of a 30 -year-old person and let \(y\) be the annual income of that person's father at age 30 years, adjusted for inflation. A random sample of 300 thirty-year-olds and their fathers yields a linear correlation coefficient of \(.60\) between \(x\) and \(y .\) A friend of yours, who has read about this research, asks you several questions, such as: Does the positive value of the correlation coefficient suggest that the 30 -year-olds tend to earn more than their fathers? Does the correlation coefficient reveal anything at all about the difference between the incomes of 30 -year-olds and their fathers? If not, what other information would we need from this study? What does the correlation coefficient tell us about the relationship between the two variables in this example? Write a short note to your friend answering these questions.

Two variables \(x\) and \(y\) have a negative linear relationship. Explain what happens to the value of \(y\) when \(x\) increases. Give one example of a negative relationship between two variables.

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