18-1

Part Four
ANALYSIS AND
PRESENTATION OF DATA

18-2
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.
 Chapter Eighteen
MEASURES OF
ASSOCIATION

18-3
 Bivariate Correlation vs. Nonparametric
Measures of Association

• Parametric correlation requires two

continuous variables measured on an
interval or ratio scale
• The coefficient does not distinguish
between independent and dependent
variables

18-4
 Bivariate Correlation Analysis

Pearson correlation coefficient

– r symbolized the coefficient's estimate of
linear association based on sampling data
– Correlation coefficients reveal the
magnitude and direction of relationships
– Coefficient’s sign (+ or -) signifies the
direction of the relationship
• Assumptions of r
Linearity
Bivariate normal distribution
18-5
 Bivariate Correlation Analysis

Scatterplots
– Provide a means for visual inspection of
data
• the direction of a relationship
• the shape of a relationship
• the magnitude of a relationship
(with practice)

18-6
 Interpretation of Coefficients

• Relationship does not imply causation

• Statistical significance does not imply a
relationship is practically meaningful

18-7
 Interpretation of Coefficients

• Suggests alternate explanations for

correlation results
– X causes Y. . . or
– Y causes X . . . or
– X & Y are activated by one or more other
variables . . . or
– X & Y influence each other reciprocally

18-8
 Interpretation of Coefficients

• Artifact Correlations
• Goodness of fit
– F test
– Coefficient of determination
– Correlation matrix
• used to display coefficients for more
than two variables

18-9
 Bivariate Linear Regression

• Used to make simple and multiple

predictions
• Regression coefficients
– Slope
– Intercept
• Error term
• Method of least squares

18-10
 Interpreting Linear Regression

• Residuals
– what remains after the line is fit or (Yi-Yi)
• Prediction and confidence bands

18-11
 Interpreting Linear Regression

• Goodness of fit
– Zero slope
• Y completely unrelated to X and no systematic

pattern is evident
• constant values of Y for every value of X
• data are related, but represented by a nonlinear
function

18-12
 Nonparametric Measures of Association

• Measures for nominal data

– When there is no relationship at all,
coefficient is 0
– When there is complete dependency, the
coefficient displays unity or 1

18-13
 Nonparametric Measures of Association

• Chi-square based measure

– Phi
– Cramer’s V
– Contingency coefficient of C
• Proportional reduction in error (PRE)
– Lambda
– Tau

18-14
 Characteristics of Ordinal Data

• Concordant- subject who ranks higher

on one variable also ranks higher on
the other variable
• Discordant- subject who ranks higher
on one variable ranks lower on the
other variable

18-15
 Measures for Ordinal Data

• No assumption of bivariate normal

distribution
• Most based on concordant/discordant
pairs
• Values range from +1.0 to -1.0

18-16
 Measures for Ordinal Data

• Tests
– Gamma
– Somer’s d
– Spearman’s rho
– Kendall’s tau b
– Kendall’s tau c

18-17