Running head: TESTING CORRELATION AND BIVARIATE REGRESSION 1

Testing Correlation and Bivariate Regression

Student’s Name

Institutional Affiliation
TESTING CORRELATION AND BIVARIATE REGRESSION 2

Testing Correlation and Bivariate Regression

Pearson’s correlation allows the researchers to establish an association between two variables

of interest. This statistic test method also enables the researchers to determine how a particular

factor varies while changing another variable. This approach is advantageous because it uses the

concept of covariance. Pearson’s correlation coefficients range from -1 to 1, where 0 indicates

that there is no relationship between the variables under study. Pearson correlation assumes that

the variables under consideration are continuous (Frankfort-Nachmias & Leon-Guerrero, 2017).

Apart from that, the data should not have outliers and must be homoscedastic. Simple linear

regression is another robust statistical tool that helps in testing the association between two

variables. This method needs independent and dependent variables. The simple linear regression

model assumes that the data used should be linear and homoscedastic.

This assignment uses the Afrobarometer data to perform Pearson correlation and simple linear

regression using SPSS statistical software. The variables chosen for this task are the current

degree of democracy and the economic index in the countries featured. These variables are

suitable for Pearson correlation since they are of the scale level of measurement (Wagner, 2019).

The two factors, therefore, satisfy the continuous assumption of the Pearson correlation. The

researcher can now continue to test the null hypothesis, which, in this case, states that the current

level of democracy has a relationship with the economic index. The SPSS Pearson correction

output is as follows:
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Correlations
The current Handling of Economy Index

level of (higher scores=higher satisfaction)

democracy
Pearson
The current level of 1 .341**
Correlation
freedom Sig. (2-tailed) .000
N 46940 42881
Handling of Economy Pearson
.341** 1
Index (higher Correlation
Sig. (2-tailed) .000
scores=higher
N 42881 45968
satisfaction)
At 0.01 level (2-tailed), the association is significant.
This outcome gives a correlation coefficient of .341 between today’s level of democracy and

the economic index. This statistic reflects that the two variables under study have a positive

association. The p-value (.000) is less than 0.05. As a result, the researcher can conclude that

with 95% confidence, the current level of democracy has a positive association with the index of

the economy. This table also shows 99% significance under the 2-tailed test of the hypothesis.

These results depict that if the government of a particular country ensures that there is a

democracy, the economy will stabilize.

The independent variable in this task is the level of democracy while handling the economic

index is the dependent factor. The SPSS output of simple linear regression is as follows:

Summary of design
Design R R2 Adjusted R2 Estimation

l standard error
a
1 .341 .116 .116 3.21903
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a. Predictors: (Constant), Current level of democracy

The bivariate regression summary gives R= .341, which is the same as Pearson’s correlation

coefficient. This value depicts a positive association between the variables. The R square (.116)

gives the effect size (Laureate, 2019). This outcome, therefore, indicates that the simple linear

regression model explains about 11.6% of the variances.

ANOVA
Design SS df MS F Sig.
Regression 58373.656 1 58373.656 5633.339 .000b
1 Residual 444319.748 42879 10.362
Total 502693.404 42880
a. Dependent Variable: Handling of Economy Index (higher scores=higher

satisfaction)
b. Predictors: (Constant), Current level of democracy
The ANOVA table gives a p-value (.000), which is less than 0.05. This outcome indicates that

the results are significant; hence, the researcher can interpret the R square. The researcher can,

therefore, conclude that the two variables have a positive relationship at a 95% confidence level.

Bivariate Regression Coefficientsa

Design Un-normalized Normalized t Significance

Coefficients Coefficients
B Standard β

error
(Invariable) 7.228 .034 215.518 .000
1 The current level of
.406 .005 .341 75.056 .000
democracy
a. Dependent Variable: Handling of Economy Index (higher scores=higher satisfaction)
This table indicates that the regression y-intercept is at 7.228. The un-standardized coefficient

is .406. These results indicate the country’s economic index will grow by 0.406 as the democracy

level increases. This output gives beta = .341, which is the same as Pearson’s correlation

coefficient hence affirming the positive association (Laureate, 2019). These results are helpful in
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the development of the communities since the leaders can use the knowledge to promote

democracy in their society. Leaders can also use the information towards the improvement of the

economy.
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References

Frankfort-Nachmias, C., & Leon-Guerrero, A. (2017). Social statistics for a diverse society. Sage

Publications.

Laureate Education (Producer). (2016b). Correlation and bivariate regression [Video file].

Baltimore, MD: Author

Wagner III, W. E. (2019). Using IBM® SPSS® statistics for research methods and social

science statistics. Sage Publications.