(All Steps) Sometimes correlation matrices are used to test out unusual speculations, or apparently unrelated ideas. The limitation however is causality
Question: Sometimes correlation matrices are used to test out unusual speculations, or apparently unrelated ideas. The limitation however is causality (not casualty). Dependence does not necessarily mean cause , it can be coincidental.
In the following data set, please do the following:
- Construct a correlation matrix around the following data set. Note the critical t-scores are dependent on the size of the array (n x m).
| Population | % drivers using seat belts. | Avg checking Balance | % Never out of county | % households with 2 dogs or more | |
| Modesto | 180000 | 84 | 510 | 10 | 18 |
| Manteca | 63000 | 88 | 540 | 5 | 15 |
| Turlock | 42000 | 80 | 760 | 10 | 14 |
| Elk Grove | 137000 | 97 | 1000 | 2 | 8 |
| Stockton | 250000 | 90 | 540 | 7 | 15 |
| Lodi | 65000 | 90 | 615 | 8 | 10 |
| Tracy | 55000 | 95 | 970 | 3 | 6 |
Discuss all significant (defined as α ≤ 0.05) observations, and interpret the results. Pay particular attention to the correct interpretation of negative, as well as positive correlation. Are the significant observations coincidental, or are they causes?
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