ESS210B
Prof. Jin-Yi Yu
Significance Test of Correlation Coefficient
qWhen the true correlation coefficient is zero (H0: r=0 and H1: r¹0)
q      Use Student-t to test the significance of r
q
q                                 and  n = N-2 degree of freedom
q
q
qWhen the true correlation coefficient is not expected to be zero
q      We can not use a symmetric normal distribution for the test.
q      We must use Fisher’s Z transformation to convert the distribution of r
q            to a normal distribution:
q      
mean of Z
std of Z