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A polling organization is checking its database to see if the data sources it used sampled the same ZIP codes. The variable Datasource \(=1\) if the data source is MetroMedia, 2 if the data source is DataQwest, and 3 if it's RollingPoll. The organization finds that the correlation between five-digit ZIP code and Datasource is \(-0.0229 .\) It concludes that the correlation is low enough to state that there is no dependency between ZIP Code and Source of Data. Comment

Short Answer

Expert verified
The conclusion drawn by the polling organization is correct. A correlation coefficient of -0.0229, which is very close to zero, indicates almost no linear relationship between the ZIP Code and the Source of Data, suggesting that the two variables are independent of each other.

Step by step solution

01

Understand the concept of correlation

Correlation is a statistical measure that demonstrates the relation between two or more variables. The correlation coefficient ranges from -1 to 1. A correlation coefficient close to 1 suggests a strong positive correlation, a correlation coefficient close to -1 indicates a strong negative correlation, and a value near zero means there is no linear relationship between the variables.
02

Analyze the given correlation coefficient

We are given the correlation between five-digit ZIP code and Datasource as -0.0229.
03

Interpret the correlation coefficient

This negative correlation coefficient is very close to zero. As such, it suggests that there's almost no linear relationship between the ZIP Code and Source of Data, so these two variables are not dependent on each other.

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Key Concepts

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

Correlation Coefficient
The correlation coefficient is a crucial statistical metric that quantifies the strength and direction of a linear relationship between two variables. Think of it as an index that ranges from -1 to 1, where each value tells us something about the relationship:

  • A value of 1 indicates a perfect positive correlation: as one variable increases, so does the other.
  • A value of -1 signifies a perfect negative correlation: as one variable increases, the other decreases.
  • A value of 0 means no correlation: there's no linear relationship between the variables.
Interpreting the correlation coefficient requires a nuanced understanding. For example, the given correlation of (-0.0229) between ZIP code and Datasource is very close to zero, indicating a negligible linear relationship. However, it's essential to note that this doesn't imply a total absence of any relationship; rather, it suggests that if there is one, it isn't linear or is very weak. A common mistake is to equate a zero or near-zero correlation with no relationship at all, whereas correlations do not capture nonlinear relationships or any relationship that isn't directly proportional.

In the case of the polling organization, the low correlation signifies that the ZIP codes sampled are just as likely to come from any of the data sources, which supports the organization's conclusion about the lack of dependency between the two variables.
Statistical Dependence
The concept of statistical dependence is about understanding whether one variable provides any information about another. If two variables are dependent, knowing the value of one variable can help you predict the value of the other.

Independence vs Dependence

  • Independent variables do not provide any information about each other. Their occurrences or changes are completely by chance with respect to one another.
  • Dependent variables, in contrast, have a relationship where one can be used to predict changes in the other.
In the context of our polling organization example, demonstrating low or no correlation does not necessarily equate to independence, as there could be other types of relationships not captured by the correlation coefficient. However, when a correlation coefficient is near zero, it often suggests that no strong linear predictive relationship exists. Still, the organization might want to investigate further using different statistical methods to rule out any form of dependence comprehensively.
Data Sampling
The term data sampling refers to the process of selecting a subset of individuals, observations, or items from a larger population to estimate characteristics of the whole population. Effective sampling is pivotal in research as it can help to save resources while still achieving accurate results.

Sampling Techniques

There are various sampling methods, only some of which are:

  • Simple random sampling gives every member of the population an equal chance of being selected. This method aims to reduce sampling bias.
  • Stratified sampling divides the population into strata, or groups, based on shared characteristics, before sampling from each group. This can ensure representation across key variables.
  • Cluster sampling is useful when it's impractical to conduct a study with a wide geographical spread, often involving selecting groups or clusters randomly, then sampling within them.
Applied to our scenario, the polling organization should ensure its data sampling method is robust enough to minimize bias and represent the different ZIP codes adequately. A poor sampling method could lead to incorrect conclusions about the true nature of the relationship between ZIP codes and the data source. Hence, the organization should assess its sampling strategy to ensure that it's not just the correlation coefficient leading them to their conclusion but also a sound and fair sampling approach.

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Most popular questions from this chapter

If we assume that the conditions for correlation are met, which of the following are true? If false, explain briefly. a. A correlation of -0.98 indicates a strong, negative association. b. Multiplying every value of \(x\) by 2 will double the correlation. C. The units of the correlation are the same as the units of \(y\).

American League baseball games are played under the designated hitter rule, meaning that pitchers, often weak hitters, do not come to bat. Baseball owners believe that the designated hitter rule means more runs scored, which in turn means higher attendance. Is there evidence that more fans attend games if the teams score more runs? Data collected from American League games during the 2016 season indicate a correlation of 0.432 between runs scored and the average number of people at the home games. (www.espn.com/mlb/ attendance) a. Does the scatterplot indicate that it's appropriate to calculate a correlation? Explain. b. Describe the association between attendance and runs scored. c. Does this association prove that the owners are right that more fans will come to games if the teams score more runs?

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Suppose you were to collect data for each pair of variables. You want to make a scatterplot. Which variable would you use as the explanatory variable and which as the response variable? Why? What would you expect to see in the scatterplot? Discuss the likely direction, form, and strength. a. Legal consultation time, cost b. Lightning strikes: distance from lightning, time delay of the thunder C. A streetlight: its apparent brightness, your distance from it d. Cars: weight of car, age of owner

If we assume that the conditions for correlation are met, which of the following are true? If false, explain briefly. a. A correlation of 0.02 indicates a strong, positive association. b. Standardizing the variables will make the correlation \(0 .\) c. Adding an outlier can dramatically change the correlation.

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