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Technical Note—The Effect of Grouping Continuous Variables on Correlation Coefficients

10 citations0/0 files storedMarketing Science

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Multidisciplinary Science and Engineering Research Psychometric Methodologies and Testing Statistical Methods and Applications

Abstract

The purpose of this note is to supplement some recent articles which discuss correlations between two grouped random variables. In this paper we give a more parsimonious and less computationally complex method of assessing the effect of grouping while also giving some insights into the best ways to group continuous variables. Implications of these results for certain marketing studies are given.

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1979Maximum Likelihood Estimation of the Polychoric Correlation Coefficient 1979On The Robustness Of Factor Analysis Against Crude Classification Of The Observations 1980Level of Measurement 1922ON POLYCHORIC COEFFICIENTS OF CORRELATION 1977On the Mean and Variance of the Tetrachoric Correlation Coefficient 1978Effects of Scaling on the Correlation Coefficient: Additional Considerations 1975Algorithm AS 87: Calculation of the Polychoric Estimate of Correlation in Contingency Tables

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