r is the product moment correlation co-efficient used to describe the relationship of values, positive corelation or negative and the magnitude describes the strength whilst the sign decides the direction
if r = +1 there's perfect positive correlation, if r = -1 there's perfect negative correlation, if r = 0 there's no linear association between two variables
How to calculate PMCC?
make sure frequency is turned off in calculator
input table of values with the linear equation option
press option and regression calculations
Formulas needed to calculate PMCC
1 standard deviantion covers 68 % of the data
2 standard deviations covers 95% of the data
3 standard deviations covers 99.7% of the data
68-95-99.7 rule
PMCC measure the type and strength of linear correlation between 2 variables
In context to PMCC and signifcance level, when you are testing for no correlation you half the level of significance
In context to PMCC, when testing for no correlation,
r is either less than the negative PMCC or greater than the PMCC for the critical regions
When is a binomial distribution suitable?
Fixed number of trials
Fixed probabilities
only 2 outcomes
independent
When events are mutually exclusive P(aUb) = P(a) + P(b)
there is no overlap between the sets
When events are independent P(A and B) = P(A) * P(B)