
Accession Number : AD0426082
Title : SPURIOUS CORRELATION DUE TO DEFLATING VARIABLES,
Corporate Author : RAND CORP SANTA MONICA CALIF
Personal Author(s) : Madansky,Albert
Report Date : DEC 1963
Pagination or Media Count : 7
Abstract : This Memorandum shows that when a homogeneous linear regression of a normally distributed variable Y on two nromally distributed variables X and Z is deflated by Z, then when X and Y are uncorrelated the deflated dependent variable Y/Z and independent variable X/Z are either uncorrelated or perfectly correlated. Thus, existing approximations to the covariance of these deflated variables are poor. A new approximation to this covariance is given which has the same defect for normally distributed variables, but which could otherwise be better than existing ones. (Author)
Descriptors : (*STATISTICAL FUNCTIONS), (*CORRELATION TECHNIQUES), STATISTICAL ANALYSIS
Distribution Statement : APPROVED FOR PUBLIC RELEASE