TEST OF SIGNIFICANT

RELATIONSHIP/
ASSOCIATION
Correlation Analysis
Correlation is a statistical technique
that can show how strongly pairs of
variables are related.
Examples:
(1) score and the no. of hours studying
(2) extent of experience and
competence at work
Correlation Analysis
 The correlation coefficient, r describes the
extent of correlation between the variables.
 One can have idea on the significance,
direction, and strength of the relationship
Ranges from -1.0 to +1.0
Extent: -1.0 or +1.0, strong; close 0, weak;
 The p-value shows the extent of statistical
significance; that is, as to data provide
sufficient evidence that correlation between
the variables is significant.
Rule of the thumb: p-value < α =1%, 5%, 10%
What test should be used?
Relationship
 Pearson Correlation (Pearson Product-Moment
Correlation)
 Kendall’s Tau-b Correlation
 Spearman’s Rank-Order Correlation

Association
 Chi-square
PARAMETRIC STAT

ASSUMPTIONS
 The two variables considered should be measured
at the interval or ratio level.
 There is linear relationship between the two
variables (ex. use scatterplot to check the
linearity)
 The variables should be approximately normally
distributed.
PARAMETRIC STAT

ASSUMPTIONS
 The two variables considered should be measured
at the interval or ratio level.
PARAMETRIC STAT

ASSUMPTIONS
 There is linear relationship between the two
variables (ex. use scatterplot to check the
linearity)
PARAMETRIC STAT

ASSUMPTIONS
 There is linear relationship between the two
variables (ex. use scatterplot to check the
linearity)
PARAMETRIC STAT

ASSUMPTIONS
 There should be no significant outliers.
PARAMETRIC STAT

Case 1: Normal

ASSUMPTION
 The
variables
should be
approxi- Case 2: Non-normal
mately
normally
distributed.
Non-PARAMETRIC STAT

Kendall’s Tau-b Correlation, 𝑟𝑘

(Preferably used for small sample size non-
normal quantitative data)

ASSUMPTIONS
 The two variables should be measured on
an at least ordinal scale.
 There is monotonic relationship between
the two variables – Y goes in one direction
as X changes.
Non-PARAMETRIC STAT

Spearman’s Rank-Order
Correlation, 𝑟𝑠
Assumptions:
1. The two variables considered should be
measured on an ordinal, or interval or ratio
level.
2. There is monotonic relationship between the
two variables.
Non-PARAMETRIC STAT

Chi-square Test for Association

This test is used to determine whether there is
significant association between two categorical
variables.
Significant value (p-value): We want to compare
this value to the default value of α (level of
significance), which is set to 0.05 or 5%. The
decision rule is: If p-value is lesser than α, then
there is significant association between the two
variables. Otherwise, association is not significant.
Presentation of Results
 Presentation of Results

High Association (≥ 0.50), Moderate Association (0.30 − 0.49),

Low Association (0.10 − 0.29), and Little, if there is any association (0.00 − 0.09).