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Spurious correlation between ratios with a common divisor

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  • Kim, Ji-Hyun

Abstract

One hundred years ago Karl Pearson derived an approximate formula for the correlation between ratios with a common divisor and cautioned to be wary of correlating ratios. The exact formula for the correlation between ratios is derived. It can provide a better reference point of no connection when correlating ratios with a common divisor.

Suggested Citation

  • Kim, Ji-Hyun, 1999. "Spurious correlation between ratios with a common divisor," Statistics & Probability Letters, Elsevier, vol. 44(4), pages 383-386, October.
    • Handle: RePEc:eee:stapro:v:44:y:1999:i:4:p:383-386
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    References listed on IDEAS

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    1. Aldrich, J., 1995. "Correlations genuine and spurious in Pearson and Yule," Discussion Paper Series In Economics And Econometrics 9502, Economics Division, School of Social Sciences, University of Southampton.
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