Association Between Variables

Measured at the Ordinal Level

Using the Statistic Gamma and
Conducting a Z-test for Significance
Introduction to Gamma
 Gamma is the preferred measure to test
strength and direction of two ordinal-level
variables that have been arrayed in a
bivariate table.
 Before computing and interpreting Gamma, it
is always useful to find and interpret the
column percentages.
 Gamma can answer the questions:
 1. Is there an association?
 2. How strong is the association?
 3. What direction (because level is ordinal) is it?
 Introduction to Gamma
(cont.)
 Gamma can also be tested for significance using
a Z or t-test to see if the association (relationship)
between two ordinal level variables is significant.

 In this case, you would use the 5 step method, as

for χ2 and conduct a hypothesis test.
Introduction to Gamma
(cont.)
 Like Lambda, Gamma is a PRE (Proportional
Reduction in Error) measure: it tells us how
much our error in predicting y is reduced
when we take x into account.
 With Gamma, we try to predict the order of
pairs of cases (predict whether one case will
have a higher or lower score than another)
 For example, if case A scores High on
Variable1 and High on Variable 2, will case B
also score High-High on both variables?
Introduction to Gamma
(cont.)
 To compute Gamma, two quantities must be
found:
 Ns is the number of pairs of cases ranked in the
same order on both variables.
 Nd is the number of pairs of cases ranked
differently on the variables.
 Gamma is calculated by finding the ratio of
cases that are ranked the same on both
variables minus the cases that are not ranked
the same (Ns – Nd) to the total number of
cases (Ns + Nd).
Computing Gamma
 This ratio can vary from +1.00 for a perfect
positive relationship to -1.00 for a perfect
negative relationship. Gamma = 0.00 means
no association or no relationship between
two variables.

 Note that when Ns is greater than Nd, the ratio

with be positive, and when Ns is less than Nd
the ratio will be negative.
Formula for Gamma
 Formula for Gamma:

ns  nd
G
n s  nd
 A Simple Example for Gamma
using
 Healey #12.1 (#11.1 in 2 nd
Can.)
As previously seen, this table shows the relationship between
authoritarianism of bosses (X) and the efficiency of workers (Y)
for 44 workplaces. Since the variables are at the ordinal level,
we can measure the association using the statistic Gamma.

Authoritarianism (x)
Efficiency (y) Low High
Low 10 12 22
High 17 5 22
Total 27 17 44
Simple Example (cont.)
For Ns, start with the Low-Low cell (upper
left) and multiply the cell frequency by the
cell frequency below and to the right.
 Ns= 10(5) = 50

Authoritarianism (x)
Efficiency (y) Low High
Low 10 12 22
High 17 5 22

Total 27 17 44
Simple Example (cont.)
For Nd, start with the High-Low cell (upper
right) and multiply each cell frequency by
the cell frequency below and to the left.
 Nd= 12(17) = 204

Authoritarianism (x)
Efficiency (y) Low High
Low 10 12 22
High 17 5 22

Total 27 17 44
Simple Example (cont.)
n s  nd 50  204  154
G    0.61
n s  nd 50  204 254

Value Strength
Using the table, we can
Between 0.0
see that G =-0.61 is Weak
and 0.30
a strong association.
Also, Gamma tells us that
Between 0.30
we will make 61% fewer Moderate
and 0.60
errors predicting efficiency
when we take Greater than
Strong
authoritarianism into account. 0.60
Simple Example (cont.)

 In addition to strength, gamma also identifies

the direction of the relationship. We can look
at the sign of Gamma (+ or -). In this case,
the sign is negative (G = - 0.61).
 This is a negative relationship: as
Authoritarianism increases, Efficiency
decreases.
 In a negative relationship, the variables
change in opposite directions.
Example using Healey #14.7 (#12.7
in 2 nd
)
 This question involves a more complicated
calculation for Gamma. The question asks if
aptitude test scores are related to job performance
rating for 75 city employees.

 Part a.
 Are the two variables, Aptitude, (measured as Low,
Medium and High) and Job Performance (Low,
Medium, and High) associated?
 How strong is this association?
 What direction is the association?

 Part b.
 Is the association significant?
 Part A: Calculating Gamma
 For Ns, start with the Low-Low cell (upper left) and multiply each
cell frequency by total of all cell frequencies below and to the
right and add together.
 For this table, Ns is 11(10+9+9+9) + 6(9+9) + 9(9+9) + 10 (9) = 767

Test Scores (x)

Efficiency (y) Low Moderate High Total

Low 11 6 7 24

Moderate 9 10 9 28

High 5 9 9 23

Totals 25 25 25 75
 Part A: Calculating Gamma

(cont.)
For N , start with High-Low cell (upper right) and multiply each cell
d
frequency by total of all cell frequencies below and to the left and
add together.
 For this table, Nd = 7 (10+9+9+5) + 6 (9+5) + 9(9+5) + 10 (5) = 491
Test Scores (x)
Efficiency (y) Low Moderate High Total

Low 11 6 7 24

Moderate 9 10 9 28

High 5 9 9 23

Totals 25 25 25 75
Part A: Calculating Gamma
(cont.)
n s  nd 767  491 267
G    0.21
ns  nd 767  491 1258
Value Strength
Between 0.0
Weak
and 0.30
Using the table, we can
Between 0.30
Moderate
see that G =+0.21 is and 0.60
a weak association. Greater than
Strong
We make only 21% 0.60
less error.
Part A: Calculating Gamma
(cont.)
 As noted before, gamma also identifies the
direction of the relationship. We can look at
the sign of Gamma (+ or -). In this case, the
sign is positive (G = + 0.21).
 This is a positive relationship: as Aptitude
Test Scores increase, Job Performance
increases.
 Next, we test the association for significance,
using the 5 step method.
Part B: Testing Gamma for
Significance
 The test for significance of Gamma is a

hypothesis test, and the 5 step model should be

used.
 Step 1: Assumptions
 Random sample, ordinal, Sampling Dist. is normal
 Step 2: Null and Alternate hypotheses
 Ho: γ=0, H1: γ≠0 (Note: γ is the population value of G)
 Step 3: Sampling Distribution and Critical Region
 Z-distribution, α = .05, z = +/-1.96
Part B: Testing Gamma for
Significance (cont.)
 Part 4: Calculating Test Statistic:

ns  nd
zG
Formula :
 

N 1 G 2

767  491
Calculate: z  .21  .21(4.19)  0.88
 

75 1  .21 2
Part B: Testing Gamma for
Significance (cont.)
 Step 5: Make Decision and Interpret

 Zobt=.88 < Zcrit= +/-1.96

 Fail to reject Ho

 The association between aptitude tests and

job performance is not significant.
 *Part C: No, the aptitude test should not be
continued, because there is no association.
Practice Question: Healey #14.8

(#12.8
 in 2 nd
Can.
Try this question as Ed.) assignment.
a homework
 The solution to the question can be found in
the Final Review powerpoint.

 Note: We will not cover Spearman’s rho (also

shown in Chapter 14 (12 in 2nd). This
statistic will not be included on the final exam.
 Kendall’s Tau b* (not in 1st
Can. Ed.)
*do not need
The statistic tothecalculate
Tau b is – forof
preferred measure
strength
SPSS only to report when a bivariate table has
many “tied pairs” (when cases are scored the
same on both variables in a table)
 In this case, gamma will tend to overestimate the
strength of the association.
 Rule of thumb: when the value of gamma is
double that of Tau b, report Tau b instead,
because it will be a better measure of strength.
 *omit Tau c and Spearman’s rho
Using SPSS to Calculate
Gamma
 Go to Analyze>Descriptives>Crosstabs (as
with Chi-square). Click on Cells for column %
and on Statistics, asking for both Gamma and
Tau b.
 Note that SPSS uses a t-test rather than a Z-
test to test Gamma for significance. Compare
the significance of Gamma (this is the p-
value) to your alpha value. If your p-value is
less than your alpha, then the association is
significant.