Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Association between nominal and continuous variables

  1. Apr 17, 2012 #1
    Suppose you have two random samples of the profit margins obtained by two
    stock traders, Trader A and Trader B. The first data set consists of 18
    data, and the second has 21.

    I want to check if there is association between the variables
    "type of trader" (values A or B) and "profit margin". In words,
    I need to find out if the choice of trader influences the profit
    margin obtained.

    Since the observations are not paired and, after all,
    the numbers of observations are distinct, I cannot use
    the linear correlation coefficient formula.

    I know there is a formula to verify if a nominal (discrete)
    variable and a continuous varible are associated. I also
    know it involves the means and standard deviations of
    both data sets. I have been told, too, that it gives a result
    ranging from 0 to 1 and that, the closer it is to 1, the stroger
    is the association.

    The trouble is I missed the class about the formula
    and it has proven really hard to find it on the web, since
    I don't know its name. So I would really appreciate if you guys
    could write it down for me. I need it as soon as possible and
    I can't ask my teacher right now; so I really need your help.

    If the data sets are needed, I can provide them. But I don't think
    they're necessary, now that it's only the formula what I need. I
    already know how to solve the problem.

    Thanks in advance,
  2. jcsd
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook

Can you offer guidance or do you also need help?
Draft saved Draft deleted