by
Robert A. Yaffee
Keywords: Correlation, Reliability, Validity, Alpha, Kappa, Intraclass correlation, correction for attenuation, chi-square, gamma, phi, tau, Somer's d, Spearman rho, multiple correlation, partial correlation, semipartial correlation, causation, Godel, coefficient of determination, triangulation.
Introduction
Dichotomous variables may be correlated. The kind of correlation that is applied to two binary variables is the phi correlation. A correlation between two
where


Significance Test:
Ordinal Variables
Correlations that control for tied ranks
Kendall's Tau b
Asymmetric Correlation Analysis
Asymmetric Somer's D

Significance Test for Somer's D:
Spearman rho : Nonparametric correlation between two ordinal variables. Kendall
showed that the Spearman and the Pearson Product Moment Correlation are
equivalent.

Spearman rho corrected for tied ranks
Continuous Variables
Covariance of two variables: X and Y.

Pearson Product Moment Correlation consists of the covariation divided by the square root of the product of the standard deviations of the two variables.
Test for Difference in Magnitude between Two Independent Correlations
z' = 1/2 [ ln(1 + r) - ln (1 -r)]
From these transformations, z1' and z2' are obtained. ln is the natural logarithm. That is the logarithm to the base e. Then it is necessary to compute the standard error for the Fisher's z transformation.
Often the difference is computed between different sized random samples. The differrence between the two transformed correlations is divided by the standard error to yield a normal curve deviate.
If this is greater than 1.96, then the difference between the correlations is significant at the .05 level.
Coefficient of Determination: R 2 is the proportion of variance explained between
two
variables. The correlation coefficient that is usually squared can either
be a bivariate
Pearson Product Moment correlation or a multiple correlation. When squared,
the coefficient when applied to a regression model represents the common
variance explained by the
predicor variables. If
the coefficient squared
is the semipartial correlation, the coefficient represents the explained
variance added by the predictor variable added last. The coefficient of
determination is a measure of the strength of the relationship between the
predicted variable and model of the predictors in a regression model.
Correlations between variables with different Levels of Measurement:
Parametric Correlations that control for other variables : Standard assumptions of Pearson Product Moment Correlations are required.
Time Series Analysis

Validity: The measurement of what is supposed to be measured.
It is the extent of unbiasedness of a measure or set of indicators
Reliability: the correlation between the observed variable
and the true score when the
variable is
an inexact or imprecise indicator of the true score (Cohen and Cohen,
1983). Inexact measures may come from random inattentiveness, guessing,
differential perception, recording errors, etc. on the part of the
observers. These measurement errors are assumed to be random in classical
test theory. Under such conditions, the reliability
is the ratio of the true score to the observed score variance(Pedhazur and
Schmelkin, 1991). In the event of
inexact measurement, the correlation between two constructs is often corrected for
attenuation(unreliability or
imprecise measurement). The correction is computed by dividing the
correlation between the measures by of the square root of the product of the
reliabilities of the
two variables. Reliability is a necessary but not a sufficient condition
for
validity (Pedhazur & Schmelkin, 1991). The question of measurement of
reliability becomes
important.

from which it can be seen that alpha measures true variance
over total variance. The range of the alpha is from 0 to 1.0. If
the user obtains negative alphas, it means that his items are
inconsistently coded. Consistent coding means all items have to be
coded so that high values on the items correspond to high values on
the total scale scores. If the item-total correlations are negative,
then the coding of the items needs to be reviewed and corrected before
computation of the alpha.
According
to J.C. Nunnelly (1998), the alpha of a scale should be greater than .70
for items to be used together as a scale (Nunnelly, 1978). The alpha for the
total scale is also computed assuming that the item under examination is
deleted. If the
alpha increases over the current total scale alpha when an item is
deleted, then the rule of thumb is to delete the item unless it is
theoretically necessary for the analysis.
While SPSS does not yet compute the coefficient theta, it can be easily calculated from the factor analysis output produced by SPSS.
Another measure of reliability in factor analysis is the squared multiple correlation of a variable with that variable has multiple causes or when its error term is related to other error terms (Bollen, 1989).

Caveats of Correlation Analysis
1. Correlation (association) does not prove causation
Causal Modeling
Programming the SPSS Correlations
With the Crosstabs Procedure
After setting the dependent variable in the column and the independent variable in the row, one clicks on statistics, and selects the appropriate statistical procedure.
With the Correlations procedure
After selecting the bivariate correlation, proceed to the statistics option and select the appropriate statistical procedure. With 2 ordinal variables, the Spearman is selected.

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