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How does the \(t\) value for the sample correlation coefficient \(r\) compare to the \(t\) value for the corresponding slope \(b\) of the sample least-squares line?

Short Answer

Expert verified
The t-values for \( r \) and \( b \) are directly related and often equivalent, testing the same hypothesis about linear relationships.

Step by step solution

01

Understand the Relationship between r and b

Recognize that the sample correlation coefficient \( r \) and the slope \( b \) of the sample least-squares line are related by the formula \( b = r \left(\frac{s_y}{s_x}\right) \), where \( s_y \) and \( s_x \) are the standard deviations of the \( y \) and \( x \) data sets, respectively. This shows that \( b \) is directly proportional to \( r \), assuming the standard deviations are constants determined by the data.
02

Calculate the t-value for r

The \( t \)-value for the sample correlation coefficient \( r \) is calculated using the formula: \[ t_r = \frac{r \sqrt{n-2}}{\sqrt{1-r^2}} \] where \( n \) is the sample size. This formula emerges from the distribution of \( r \) under the assumption that the data follows a bivariate normal distribution.
03

Calculate the t-value for b

The \( t \)-value for the slope \( b \) of the least-squares line can be calculated using: \[ t_b = \frac{b}{SE_b} \] where \( SE_b \) is the standard error of the slope, calculated as \( SE_b = \frac{s_e}{\sqrt{\sum (x_i - \bar{x})^2}} \), with \( s_e \) being the standard error of the estimate.
04

Compare the t-values of r and b

Note that both \( t_r \) and \( t_b \) are measures of statistical significance of their respective statistics (\( r \) and \( b \)). They rely on the sample size and the variability in the data. The formulas will yield proportional results, as \( b \) is essentially a linear transformation of \( r \). In fact, under certain conditions and assumptions, \( t_r \) and \( t_b \) will be numerically equivalent, as both test for the same hypothesis regarding the linear relationship in the sample.

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Key Concepts

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

Understanding the T-Value in Statistical Analysis
The t-value is a fundamental concept in statistical analysis, often used to determine whether two sets of data are significantly different from each other. For the sample correlation coefficient \( r \), the t-value \( t_r \) is computed using the formula: \[ t_r = \frac{r \sqrt{n-2}}{\sqrt{1-r^2}} \] where \( n \) represents the sample size. This calculation assumes that the data follows a bivariate normal distribution which is a common assumption for many statistical analyses.
The t-value helps in testing hypotheses such as whether \( r \) is significantly different from zero, implying a significant linear relationship between two variables.
  • Higher values of \( |t_r| \) indicate stronger evidence against the null hypothesis.
  • A large positive or negative \( t_r \) suggests that the correlation coefficient is significantly different from zero.
Comparing \( t_r \) with critical values from the t-distribution allows statisticians to determine the likelihood of observing a correlation by chance within the sample's context.
Decoding the Sample Correlation Coefficient
The sample correlation coefficient, often denoted as \( r \), provides a measure of the strength and direction of a linear relationship between two variables. It is a dimensionless value ranging between -1 and 1.
  • A value of 1 or -1 indicates a perfect positive or negative linear relationship, respectively.
  • A value of 0 implies no linear correlation exists.

In statistics, \( r \) is not just a number representing the relationship; it is also used to derive the slope \( b \) of the least-squares line through the formula: \[ b = r \left(\frac{s_y}{s_x}\right) \] This equation highlights that \( b \) is directly proportional to \( r \). The standard deviations \( s_y \) and \( s_x \) ensure that the scale of \( y \) and \( x \) influences \( b \). This relationship is crucial for understanding how data points align on a regression line, thereby reflecting real-world phenomena that the data may represent.
Demystifying the Least-Squares Line
The least-squares line or best-fit line is a straight line that best represents the data on a scatter plot. It is determined by minimizing the sum of the squares of the vertical distances of the points from the line.
The slope \( b \) of this line is closely tied to the sample correlation coefficient \( r \), derived using: \[ b = r \left( \frac{s_y}{s_x} \right) \] This shows how \( b \) represents the amount of change in \( y \) corresponding to a one-unit change in \( x \), given the variabilities \( s_y \) and \( s_x \).
  • The t-value for \( b \), \( t_b \), is calculated by: \[ t_b = \frac{b}{SE_b} \] where \( SE_b \) is the standard error of the slope, indicating the precision of \( b \).
  • The least-squares line is the backbone of linear regression and is critical in predicting outcomes and identifying trends.
Through these calculations, analysts can quantitatively describe the relationship and make informed predictions based on the data, thus bridging theoretical statistics with practical applications.

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Most popular questions from this chapter

What is the symbol used for the population correlation coefficient?

Prisons Does prison really deter violent crime? Let \(x\) represent percent change in the rate of violent crime and \(y\) represent percent change in the rate of imprisonment in the general U.S. population. For 7 recent years, the following data have been obtained (Source: The Crime Drop in America, edited by Blumstein and Wallman, Cambridge University Press). $$ \begin{array}{l|rrrrrrr} \hline x & 6.1 & 5.7 & 3.9 & 5.2 & 6.2 & 6.5 & 11.1 \\ \hline y & -1.4 & -4.1 & -7.0 & -4.0 & 3.6 & -0.1 & -4.4 \\ \hline \end{array} $$ Complete parts (a) through (e), given \(\Sigma x=44.7, \Sigma y=-17.4, \Sigma x^{2}=315.85\), \(\Sigma y^{2}=116.1, \Sigma x y=-107.18\), and \(r \approx 0.084 .\) (f) Critical Thinking Considering the values of \(r\) and \(r^{2}\), does it make sense to use the least-squares line for prediction? Explain.

Fuming because you are stuck in traffic? Roadway congestion is a costly item, in both time wasted and fuel wasted. Let \(x\) represent the average annual hours per person spent in traffic delays and let \(y\) represent the average annual gallons of fuel wasted per person in traffic delays. A random sample of eight cities showed the following data (Reference: Statistical Abstract of the United States, 122 nd Edition). $$ \begin{array}{l|llllllll} \hline x(\mathrm{hr}) & 28 & 5 & 20 & 35 & 20 & 23 & 18 & 5 \\ \hline y(\mathrm{gal}) & 48 & 3 & 34 & 55 & 34 & 38 & 28 & 9 \\ \hline \end{array} $$ (a) Draw a scatter diagram for the data. Verify that \(\Sigma x=154, \Sigma x^{2}=3712\), \(\Sigma y=249, \Sigma y^{2}=9959\), and \(\Sigma x y=6067\). Compute \(r\) The data in part (a) represent average annual hours lost per person and average annual gallons of fuel wasted per person in traffic delays. Suppose that instead of using average data for different cities, you selected one person at random from each city and measured the annual number of hours lost \(x\) for that person and the annual gallons of fuel wasted \(y\) for the same person. $$ \begin{array}{l|cccccccc} \hline x(\mathrm{hr}) & 20 & 4 & 18 & 42 & 15 & 25 & 2 & 35 \\ \hline y(\mathrm{gal}) & 60 & 8 & 12 & 50 & 21 & 30 & 4 & 70 \\ \hline \end{array} $$ (b) Compute \(\bar{x}\) and \(\bar{y}\) for both sets of data pairs and compare the averages. Compute the sample standard deviations \(s_{x}\) and \(s_{y}\) for both sets of data pairs and compare the standard deviations. In which set are the standard deviations for \(x\) and \(y\) larger? Look at the defining formula for \(r\), Equation \(1 .\) Why do smaller standard deviations \(s_{x}\) and \(s_{y}\) tend to increase the value of \(r\) ? (c) Make a scatter diagram for the second set of data pairs. Verify that \(\Sigma x=161, \quad \Sigma x^{2}=4583, \quad \Sigma y=255, \quad \Sigma y^{2}=12,565\), and \(\Sigma x y=7071 .\) Compute \(r\). (d) Compare \(r\) from part (a) with \(r\) from part (c). Do the data for averages have a higher correlation coefficient than the data for individual measurements? List some reasons why you think hours lost per individual and fuel wasted per individual might vary more than the same quantities averaged over all the people in a city.

All Greens is a franchise store that sells house plants and lawn and garden supplies. Although All Greens is a franchise, each store is owned and managed by private individuals. Some friends have asked you to go into business with them to open a new All Greens store in the suburbs of San Diego. The national franchise headquarters sent you the following information at your request. These data are about 27 All Greens stores in California. Each of the 27 stores has been doing very well, and you would like to use the information to help set up your own new store. The variables for which we have data are \(x_{1}=\) annual net sales, in thousands of dollars \(x_{2}=\) number of square feet of floor display in store, in thousands of square feet \(x_{3}=\) value of store inventory, in thousands of dollars \(x_{4}=\) amount spent on local advertising, in thousands of dollars \(x_{5}=\) size of sales district, in thousands of families \(x_{6}=\) number of competing or similar stores in sales district A sales district was defined to be the region within a 5 -mile radius of an All Greens store. $$ \begin{array}{rlrrrr|rrrrrr} \hline x_{1} & x_{2} & x_{3} & x_{4} & x_{5} & x_{6} & x_{1} & x_{2} & x_{3} & x_{4} & x_{5} & x_{6} \\ \hline 231 & 3 & 294 & 8.2 & 8.2 & 11 & 65 & 1.2 & 168 & 4.7 & 3.3 & 11 \\ 156 & 2.2 & 232 & 6.9 & 4.1 & 12 & 98 & 1.6 & 151 & 4.6 & 2.7 & 10 \\ 10 & 0.5 & 149 & 3 & 4.3 & 15 & 398 & 4.3 & 342 & 5.5 & 16.0 & 4 \\ 519 & 5.5 & 600 & 12 & 16.1 & 1 & 161 & 2.6 & 196 & 7.2 & 6.3 & 13 \\ 437 & 4.4 & 567 & 10.6 & 14.1 & 5 & 397 & 3.8 & 453 & 10.4 & 13.9 & 7 \\ 487 & 4.8 & 571 & 11.8 & 12.7 & 4 & 497 & 5.3 & 518 & 11.5 & 16.3 & 1 \\ 299 & 3.1 & 512 & 8.1 & 10.1 & 10 & 528 & 5.6 & 615 & 12.3 & 16.0 & 0 \\ 195 & 2.5 & 347 & 7.7 & 8.4 & 12 & 99 & 0.8 & 278 & 2.8 & 6.5 & 14 \\ 20 & 1.2 & 212 & 3.3 & 2.1 & 15 & 0.5 & 1.1 & 142 & 3.1 & 1.6 & 12 \\ 68 & 0.6 & 102 & 4.9 & 4.7 & 8 & 347 & 3.6 & 461 & 9.6 & 11.3 & 6 \\ 570 & 5.4 & 788 & 17.4 & 12.3 & 1 & 341 & 3.5 & 382 & 9.8 & 11.5 & 5 \\ 428 & 4.2 & 577 & 10.5 & 14.0 & 7 & 507 & 5.1 & 590 & 12.0 & 15.7 & 0 \\ 464 & 4.7 & 535 & 11.3 & 15.0 & 3 & 400 & 8.6 & 517 & 7.0 & 12.0 & 8 \\ 15 & 0.6 & 163 & 2.5 & 2.5 & 14 & & & & & & \\ \hline \end{array} $$ (a) Generate summary statistics, including the mean and standard deviation of each variable. Compute the coefficient of variation (see Section \(3.2\) ) for each variable. Relative to its mean, which variable has the largest spread of data values? Which variable has the least spread of data values relative to its mean? (b) For each pair of variables, generate the sample correlation coefficient \(r .\) For all pairs involving \(x_{1}\), compute the corresponding coefficient of determination \(r^{2}\). Which variable has the greatest influence on annual net sales? Which variable has the least influence on annual net sales? (c) Perform a regression analysis with \(x_{1}\) as the response variable. Use \(x_{2}, x_{3}\), \(x_{4}, x_{5}\), and \(x_{6}\) as explanatory variables. Look at the coefficient of multiple determination. What percentage of the variation in \(x_{1}\) can be explained by the corresponding variations in \(x_{2}, x_{3}, x_{4}, x_{5}\), and \(x_{6}\) taken together? (d) Write out the regression equation. If two new competing stores moved into the sales district but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? Explain your answer. If you increased the local advertising by a thousand dollars but the other explanatory variables did not change, what would you expect for the corresponding change in annual net sales? Explain. (e) Test each coefficient to determine if it is or is not zero. Use level of significance \(5 \%\). (f) Suppose you and your business associates rent a store, get a bank loan to start up your business, and do a little research on the size of your sales district and the number of competing stores in the district. If \(x_{2}=2.8\), \(x_{3}=250, x_{4}=3.1, x_{5}=7.3\), and \(x_{6}=2\), use a computer to forecast \(x_{1}=\) annual net sales and find an \(80 \%\) confidence interval for your forecast (if your software produces prediction intervals). (g) Construct a new regression model with \(x_{4}\) as the response variable and \(x_{1}\), \(x_{2}, x_{3}, x_{5}\), and \(x_{6}\) as explanatory variables. Suppose an All Greens store in Sonoma, California, wants to estimate a range of advertising costs appropriate to its store. If it spends too little on advertising, it will not reach enough customers. However, it does not want to overspend on advertising for this type and size of store. At this store, \(x_{1}=163, x_{2}=2.4, x_{3}=188\), \(x_{5}=6.6\), and \(x_{6}=10\). Use these data to predict \(x_{4}\) (advertising costs) and find an \(80 \%\) confidence interval for your prediction. At the \(80 \%\) confidence level, what range of advertising costs do you think is appropriate for this store?

In baseball, is there a linear correlation between batting average and home run percentage? Let \(x\) represent the batting average of a professional baseball player, and let \(y\) represent the player's home run percentage (number of home runs per 100 times at bat). A random sample of \(n=7\) professional baseball players gave the following information (Reference: The Baseball Encyclopedia, Macmillan Publishing Company). $$ \begin{array}{l|lllllll} \hline x & 0.243 & 0.259 & 0.286 & 0.263 & 0.268 & 0.339 & 0.299 \\ \hline y & 1.4 & 3.6 & 5.5 & 3.8 & 3.5 & 7.3 & 5.0 \\ \hline \end{array} $$ (a) Make a scatter diagram and draw the line you think best fits the data. (b) Would you say the correlation is low, moderate, or high? positive or negative? (c) Use a calculator to verify that \(\Sigma x=1.957, \Sigma x^{2} \approx 0.553, \Sigma y=30.1\), \(\Sigma y^{2}=150.15\), and \(\Sigma x y \approx 8.753 .\) Compute \(r .\) As \(x\) increases, does the value of \(r\) imply that \(y\) should tend to increase or decrease? Explain.

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