Presentation

On
“Measures of Association”
 The Assumptions of r
The first requirement for r is linearity. The exception of r = 0
illustrate a relationship between variables that can be
described by a straight line passing through the data cloud.
When r = 0, no pattern is evident that could be described
with a single line.

The second assumption for correlation is a bivariate normal

distribution —that is, the data are from a random sample of
a population where the two variables are normally
distributed in a joint manner.
 Testing the Goodness of Fit
With the regression line plotted and a few illustrative predictions, we
should now gather some evidence of goodness of fit —how well the
model fi ts the data. The most important test in bivariate linear
regression is whether the slope, B1, Zero slopes result from various
conditions:
• Y is completely unrelated to X, and no systematic pattern is
evident.
• There are constant values of Y for every value of X.
• The data are related but represented by a nonlinear function.
 The F Test

Computer printouts generally contain an analysis of variance

(ANOVA) table with an F test of the regression model. In
bivariate regression, t and F tests produce the same results
since t 2 is equal to F . In multiple regression, the F test has
an overall role for the model, and each of the independent
variables is evaluated with a separate t -test. From the last
chapter, recall that ANOVA partitions variance into
component parts. For regression, it comprises explained
deviations, Y -Y , and unexplained deviations, Y - Yˆ.
Measures for Nominal Data

Nominal measures are used to assess the strength of relationships in

cross-classification tables. They are often used with chi-square or may be
used separately. In this section, we provide examples of three statistics
based on chi-square and two that follow the proportional reduction in
error approach. There is no fully satisfactory all-purpose measure for
categorical data. Some are adversely affected by table shape and number
of cells; others are sensitive to sample size or marginal. It is perturbing to
find similar statistics reporting different coefficients for the same data.
This occurs because of a statistic’s particular sensitivity or the way it was
devised. Technically, we would like to find two characteristics with
nominal measures:
• When there is no relationship at all, the coefficient should be 0.
• When there is a complete dependency, the coefficient should display
unity, or 1.
This does not always happen. In addition to being aware of the sensitivity
problem, analysts should be

alert to the need for careful selection of tests .

Thank You