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

Author

Listed:
  • Donald G. Morrison

    (Graduate School of Business, Columbia University, New York, New York 10027)

  • Norman E. Toy

    (College of Physicians and Surgeons, Columbia University, New York, New York 10032)

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.

Suggested Citation

  • Donald G. Morrison & Norman E. Toy, 1982. "Technical Note—The Effect of Grouping Continuous Variables on Correlation Coefficients," Marketing Science, INFORMS, vol. 1(4), pages 379-389.
    • Handle: RePEc:inm:ormksc:v:1:y:1982:i:4:p:379-389
    DOI: 10.1287/mksc.1.4.379
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    Cited by:

    1. Diamantopoulos, Adamantios & Winklhofer, Heidi, 2003. "Export sales forecasting by UK firms: Technique utilization and impact on forecast accuracy," Journal of Business Research, Elsevier, vol. 56(1), pages 45-54, January.

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