Question

1. What is the range of Pearson test? Explain it.

2. Assume that you measured the correlation between Age and income of MSUM staffs. Pearson test gave you a value of 0.65. What do you understand from this value?

Answer 1

Part 1

Pearson test is one of the most reliable methods to measure relationship between two variables as it is derived out of covariance. The strength of the relationship depends on Pearson's Correlation Coefficient.

Pearson's Correlation Coefficient can have values between -1 and +1

If the value is -1, it indicates a strong negative relationship between the two variables

If the value is 0, it indicates no relationship between two variables

If the values is +1, it indicates a strong positive relationship between the two variables

Part 2

Given that the Pearson test gave a value of 0.65 between Age and Income variables.

A value of 0.65 indicates a positive relationship between Age and income variables which is moderate to strong

Since there is a positive relationship between two variables, As the Age increases, the income too increases and when the age decreases the income too decreases.