Interval Estimation for Correlation Coefficients A two-sided 100%(1 – a) confidence interval for the population correlation coefficient (p) is : Lower limit: P1 Upper limit: P2 = ei#82+1 e221+1' where (z1,22) = z + (21-(a/2)/Vn – 3), and z = In We have a sample correlation coefficient ry based on a sample of n pairs of observations. Example: 95% CI for p when n = 10,r = 0.91 1. z=-In (1+ 0.91) In 1-0.91, 1.5275 (21,2) = 1.5275 + (1.96/V10 – 3) = ( 0.7867,2.2683) 2(0.7867 )-1 e2(0. 7867 )+1 e2(2.2683)-1 e2 (2.2063 )+1 1-1 Lower limit: P1 = = 0.6565; Upper limit: P2 0.9907. Thus, a 95% confidence interval for p = (0. 6565, 0. 9907). 1. A study was carried out into the attendance rate at a hospital of people in 16 different geographical areas, over a fixed period of time. The distance of the centre from the hospital of each area was measured in miles. The results were as follows: (1) 21%, 6.8; (2) 12%, 10.3; (3) 30%, 1.7; (4) 8%, 14.2; (5) 10%, 8.8; (6) 26%, 5.8; (7) 42%, 2.1; (8) 31%, 3.3; (9) 21%, 4.3; (10) 15%, 9.0; (11) 19%, 3.2; (12) 6%, 12.7; (13) 18%, 8.2; (14) 12%, 7.0; (15) 23%, 5.1; (16) 34%, 4.1. What is the correlation coefficient between the attendance rate and mean distance of the geographical area? Test its significance and find 95% confidence interval.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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