Under certain circumstances, correlations provide deceptive results. Under each

Question

Under certain circumstances, correlations provide deceptive results. Under each of the following conditions, is Pearson’s r an underestimate, an overestimate, or either an overestimate or underestimate of the true relationship between variables. Highlight in yellow the appropriate response (3 pts).

a. Nonlinear data:                    Overestimate               Underestimate             Either

b. Outliers:                              Overestimate               Underestimate             Either

c. Restriction in range: Overestimate               Underestimate             Either

Explanation / Answer

a) In case of Nonlinear data, the pearson r will underestimate the true relationship.

b) In case of outliers, the pearson r will overestimate the true relationship.

c) In case of restriction in range, the pearson r can either underestimate or overestimate the true relationship.

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