Almost every day you can find in media commentary that XYZ is causing stocks to fall (or rise). Such definitive statements are common—but what’s almost always missing is statistical proof. And if you ...

Once the ranks for the two variables are found, we apply the formula for the correlation to the ranks as follows: Both Spearman’s rank and Pearson’s correlation tests share the purpose of assessing ...

This article proposes two estimators of the correlation coefficient, ρ, when statisticians will not construct a master file on individuals because of confidentiality issues. The approach depends on ...

In a simulation study, no combination of the polychoric correlation coefficient with any LISREL 7 fitting function produced unbiased estimated standard errors or a correctly distributed chi square ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...