correlation coefficient

Discussion in 'CT3' started by saba usman, Oct 18, 2014.

  1. saba usman

    saba usman Member

    can anyone of two pivotal quantity be used to calculate CI or certain conditions apply?
     
  2. Hemant Rupani

    Hemant Rupani Senior Member

    I assume you're asking about t-test and Fisher Z
    So ans: apply t-test when H_0: rho=0 otherwise Fisher Z
     
    Last edited: Oct 18, 2014
  3. saba usman

    saba usman Member

    ques 13 here r is greater than zero and they have used t test result to calculate CI....???
     
  4. Hemant Rupani

    Hemant Rupani Senior Member

    Which ques. 13?????

    And we need H_0 : value of rho..... Find what ques need for population correlation coefficient(rho)
    whatever is r (r is just a sample)
     
  5. saba usman

    saba usman Member

    I think you misunderstood my question.....
    Ques13(b)
    What i asked is while solving the ques paper i calculated the CI for Rho using fisher z result and in solutions it has been calculated using t result...is both way correct?(both way gives approx same answer)
     
  6. Hemant Rupani

    Hemant Rupani Senior Member

    I did understand.
    Actually you said, "r is greater than zero and they have used t test result" so I revert, "whatever is r, we bother about rho"

    Now the main point, is any of the test is good for unknown population correlation coefficient with no clue?
    I'd say Fisher Z is wider test to use.
    I think both ways give you marks in exam.

    PS: any experienced person give advice!!!!!!!!!!
     
  7. bapan

    bapan Ton up Member

    Read page 11 of chapter 13 of the ActEd notes.

    Two points to remember:

    1. The t-test statistic only holds under \(\rho =0\). In other words, the given statistic will follow a t-distribution only when you assume \(\rho =0\). So, if you are doing a hypothesis test with Ho: \(\rho =0\), you can use it.

    2. The Fisher test statistic works for any value of \(\rho\) (including \(\rho =0\)). In other words, the statistic will follow a Normal distribution whatever be the value of \(\rho\). Hence, this statistic can also be used to derive a Confidence Interval for \(\rho\).

    Check Q11 of IAI May 2014 paper as well.
     
    Last edited: Oct 26, 2014
  8. John Lee

    John Lee ActEd Tutor Staff Member

    Given that the t result doesn't contain \(\rho\) (as it assumes it is zero) we couldn't use it to obtain a confidence interval.

    So for confidence intervals you always use the fisher result.

    However, for hypothesis tests you use the t-result if you're testing if \(\rho = 0\) and the Fisher result otherwise.

    You could use the Fisher result to test if \(\rho = 0\) but it is approximate whereas the t result is exact.
     
  9. Hemant Rupani

    Hemant Rupani Senior Member

    In IAI exam May 2009 , Q13 part (b)

    CI is calculated by t-dustribution...... They assumes \(\rho =0\)
     
  10. bapan

    bapan Ton up Member

    This is incorrect. The t-distribution cannot be used for deriving the confidence interval for \(\rho\).

    The Normal test using the Fisher's z-transformation is needed. The confidence interval thus derived is (0.062, 0.767).
     
  11. Hemant Rupani

    Hemant Rupani Senior Member

    Thanks!
     

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