SPURIOUS CORRELATION DUE TO DEFLATING VARIABLES,

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)

Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1963
Accession Number
AD0426082

Entities

People

  • Albert Madansky

Organizations

  • RAND Corporation

Tags

DTIC Thesaurus Topics

  • Computing-Related Activities
  • Covariance
  • Data Science
  • Information Science
  • Interdisciplinary Science
  • Mathematical Analysis
  • Mathematics

Fields of Study

  • Mathematics

Readers

  • Approximation Theory.
  • Finite Element Method (FEM) for solving Partial Differential Equations (PDEs)
  • Materials Science