Calculator Testing correlation coefficient Using Z-transformation

Calculator for Testing Correlation Coefficient $\rho = \rho_0$

Use this calculator for testing whether the correlation coefficient equals the specified value, i.e., $H_0:\rho=\rho_0$.

How to use calculater for testing significance of correlation coefficient?

Step 1 - Enter the $X$ values separated by commas

Step 2 - Enter the $Y$ values separated by commas

Step 3 - Enter the value of correlation coefficient under null hypothesis $\rho_0$

Step 4 - Enter the level of significance $\alpha$

Step 5 - Select the type of alternative hypothesis (Two-tailed/right-tailed/left-tailed)

Step 6 - Click on Calculate button to get the results

Step 7 - Gives the output as number of pairs $n$

Step 8 - Gives the output as Pearson's correlation coefficient

Step 9 - Gives the output of the $t$ test statistic

Step 10 - Gives the output of the degrees of freedom, critical value(s) and $p$-value

Testing Correlation Coefficient Example 1

The median records shows that the correlation between the age of the mother and the birth weight of their first child is less than -0.34. A random sample of 8 mother's age and the birth weight of their first child are as follows:

Age of mother	35	24	28	29	26	30	34	32
Birth weight of child	2.85	3.50	3.25	3.00	3.25	2.75	2.90	3.00

Test whether the medical records provide the true information at 5% level of significance.

Solution

Let $x$ denote the age of mother and $y$ denote the birth weight of first child.

The number of pairs $n= 8$.

	$x$	$y$	$x^2$	$y^2$	$xy$
1	35	2.85	1225	8.123	99.75
2	24	3.50	576	12.250	84.00
3	28	3.25	784	10.562	91.00
4	29	3.00	841	9.000	87.00
5	26	3.25	676	10.562	84.50
6	30	2.75	900	7.562	82.50
7	34	2.90	1156	8.410	98.60
8	32	3.00	1024	9.000	96.00
Total	238	24.50	7182	75.470	723.35

The sample variance of $x$ is

$$ \begin{aligned} s_{x}^2 & = \frac{1}{n-1}\bigg(\sum x^2 - \frac{(\sum x)^2}{n}\bigg)\\ & = \frac{1}{8-1}\bigg(7182-\frac{(238)^2}{8}\bigg)\\ &= \frac{1}{7}\bigg(7182-\frac{56644}{8}\bigg)\\ &= \frac{1}{7}\bigg(7182-7080.5\bigg)\\ &= \frac{101.5}{7}\\ &= 14.5. \end{aligned} $$
The sample variance of $x$ is

$$ \begin{aligned} s_{y}^2 & = \frac{1}{n-1}\bigg(\sum y^2 - \frac{(\sum y)^2}{n}\bigg)\\ & = \frac{1}{8-1}\bigg(75.47-\frac{(24.5)^2}{8}\bigg)\\ &= \frac{1}{7}\bigg(75.47-\frac{600.25}{8}\bigg)\\ &= \frac{1}{7}\bigg(75.47-75.0312\bigg)\\ &= \frac{0.4387}{7}\\ &= 0.0627. \end{aligned} $$

The sample covariance between $x$ and $y$ is

$$ \begin{aligned} s_{xy} & = \frac{1}{n-1}\bigg(\sum xy - \frac{(\sum x)(\sum y)}{n}\bigg)\\ & = \frac{1}{8-1}\bigg(723.35-\frac{(238)(24.5)}{8}\bigg)\\ &= \frac{1}{7}\bigg(723.35-\frac{5831}{8}\bigg)\\ &= \frac{1}{7}\bigg(723.35-728.875\bigg)\\ &= \frac{-5.525}{7}\\ &= -0.7893. \end{aligned} $$
The Karl Pearson's sample correlation coefficient between age of mother and birth weight of first child is

$$ \begin{aligned} r_{xy} & = \frac{Cov(x,y)}{\sqrt{V(x) V(y)}}\\ &= \frac{s_{xy}}{\sqrt{s_x^2s_y^2}}\\ &=\frac{-0.7893}{\sqrt{14.5\times 0.0627}}\\ &=\frac{-0.7893}{\sqrt{0.9092}}\\ &=-0.828. \end{aligned} $$
The correlation coefficient between age of mother and birth weight of first child is $-0.828$.

Step 1 Hypothesis Testing Problem

The hypothesis testing problem is
$H_0 : \rho = -0.34$ against $H_1 : \rho < -0.34$ ($\text{left-tailed}$)

Step 2 Test Statistic

The test statistic for testing above hypothesis testing problem is

$$ \begin{aligned} Z&=\dfrac{U-\xi}{\sqrt{\frac{1}{n-3}}} \end{aligned} $$

where

$$ \begin{aligned} U&=\frac{1}{2}\log_e \bigg(\frac{1+r}{1-r}\bigg) \end{aligned} $$

and

$$ \begin{aligned} \xi & =\frac{1}{2}\log_e \bigg(\frac{1+\rho_0}{1-\rho_0}\bigg) \end{aligned} $$

Under the null hypothesis the test statistic $Z$ follows $N(0,1)$ distribution.

Step 3 Significance Level

The significance level is $\alpha = 0.05$.

Step 4 Critical Value(s)

As the alternative hypothesis is $\text{left-tailed}$, the critical value of $Z$ $\text{is}$ $-1.64$ (from Normal Statistical Table).

The rejection region (i.e. critical region) is $\text{Z < -1.64}$.

Step 5 Computation

$$ \begin{aligned} U&=\frac{1}{2}\log_e \bigg(\frac{1+r}{1-r}\bigg)\\ &=0.5\times \log_e\bigg(\frac{1+(-0.828)}{1-(-0.828)}\bigg)\\ &=0.5\times \log_e\big(0.0941\big)\\ &=0.5\times -2.3635\\ &= -1.1817 \end{aligned} $$
and

$$ \begin{aligned} \xi&=\frac{1}{2}\log_e \bigg(\frac{1+\rho_0}{1-\rho_0}\bigg)\\ &=0.5\times \log_e\bigg(\frac{1+(-0.34)}{1-(-0.34)}\bigg)\\ &=0.5\times \log_e\big(0.4925\big)\\ &=0.5\times -0.7082\\ &= -0.3541 \end{aligned} $$

The test statistic under the null hypothesis is

$$ \begin{aligned} Z&=\dfrac{U-\xi}{\sqrt{\frac{1}{n-3}}}\\ &=\dfrac{-1.1817-(-0.3541)}{\sqrt{\frac{1}{8-3}}}\\ &=\dfrac{-0.8276}{\sqrt{\frac{1}{5}}}\\ &=-1.8507 \end{aligned} $$

Step 6 Decision (Traditional Approach)

The test statistic is $Z_{obs} =-1.851$ which falls $\text{inside}$ the critical region, we $\text{reject}$ the null hypothesis at $\alpha = 0.05$ level of significance.

OR

Step 6 Decision ($p$-value Approach)

This is a $\text{left-tailed}$ test, so the p-value is the area to the $\text{negative}$ of the test statistic ($Z_{obs}=-1.851$) is p-value = $0.0321$.

The p-value is $0.0321$ which is $\text{less than}$ the significance level of $\alpha = 0.05$, we $\text{reject}$ the null hypothesis at $\alpha =0.05$ level of significance.

Interpretation

There is enough evidence to conclude that the medical records provide true information at $0.05$ level of significance.

Testing Correlation Coefficient Example 2

The correlation between scores on a traditional aptitude test and scores on a final test is known to be approximately 0.6. A new aptitude test has been developed and is tried on a random sample of 100 students, resulting in a correlation of 0.65. Does this result imply that the new test is better?

Solution

Given that the sample correlation between $X$ and $Y$ is $0.65$ for a sample of $100$ pair of observations.

Step 1 Hypothesis Testing Problem

The hypothesis testing problem is
$H_0 : \rho = 0.6$ against $H_1 : \rho > 0.6$ ($\text{right-tailed}$)

Step 2 Test Statistic

The test statistic for testing above hypothesis testing problem is

$$ \begin{aligned} Z&=\dfrac{U-\xi}{\sqrt{\frac{1}{n-3}}} \end{aligned} $$

where

$$ \begin{aligned} U&=\frac{1}{2}\log_e \bigg(\frac{1+r}{1-r}\bigg) \end{aligned} $$

and

$$ \begin{aligned} \xi & =\frac{1}{2}\log_e \bigg(\frac{1+\rho_0}{1-\rho_0}\bigg) \end{aligned} $$

Under the null hypothesis the test statistic $Z$ follows $N(0,1)$ distribution.

Step 3 Significance Level

The significance level is $\alpha = 0.05$.

Step 4 Critical Value(s)

As the alternative hypothesis is $\text{right-tailed}$, the critical value of $Z$ $\text{is}$ $1.64$ (from Normal Statistical Table).

The rejection region (i.e. critical region) is $\text{Z > 1.64}$.

Step 5 Computation

$$ \begin{aligned} U&=\frac{1}{2}\log_e \bigg(\frac{1+r}{1-r}\bigg)\\ &=0.5\times \log_e\bigg(\frac{1+0.65}{1-0.65}\bigg)\\ &=0.5\times \log_e\big(4.7143\big)\\ &=0.5\times 1.5506\\ &= 0.7753 \end{aligned} $$
and

$$ \begin{aligned} \xi&=\frac{1}{2}\log_e \bigg(\frac{1+\rho_0}{1-\rho_0}\bigg)\\ &=0.5\times \log_e\bigg(\frac{1+0.6}{1-0.6}\bigg)\\ &=0.5\times \log_e\big(4\big)\\ &=0.5\times 1.3863\\ &= 0.6931 \end{aligned} $$

The test statistic under the null hypothesis is

$$ \begin{aligned} Z&=\dfrac{U-\xi}{\sqrt{\frac{1}{n-3}}}\\ &=\dfrac{0.7753-0.6931}{\sqrt{\frac{1}{100-3}}}\\ &=\dfrac{0.0822}{\sqrt{\frac{1}{97}}}\\ &=0.8091 \end{aligned} $$

Step 6 Decision (Traditional Approach)

The test statistic is $Z_{obs} =0.809$ which falls $\text{outside}$ the critical region, we $\text{fail to reject}$ the null hypothesis at $\alpha = 0.05$ level of significance.

OR

Step 6 Decision ($p$-value Approach)

This is a $\text{right-tailed}$ test, so the p-value is the area to the $\text{right}$ of the test statistic ($Z_{obs}=0.809$) is p-value = $0.2092$.

The p-value is $0.2092$ which is $\text{greater than}$ the significance level of $\alpha = 0.05$, we $\text{fail to reject}$ the null hypothesis at $\alpha =0.05$ level of significance.

Interpretation

There is insufficient evidence to conclude that the new test is better.

Conclusion

In this tutorial, you learned about the step by step procedure for testing the correlation coefficients, i.e., $H_0:\rho=\rho_0$. You also learned about how to interpret the results of testing correlation coefficient.

To learn more about other correlation and regression, please refer to the following tutorials:

Correlation and Regression

Let me know in the comments if you have any questions on Testing the correlation coefficient using z-transformation and your thought on this article.