Statistics Question:

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Statistics Question:

jimjohn
sorry guys, this isn't related to SPSS but it is related to statistics.
some of the variables in my data set include: Redemption Rate, Incentive, Issue Date, Age, original balance, etc.
I have about 9 million cases, and I am analyzing the correlation between redemption rate (between 0 and 100) and incentive (betwen -1 and 1). The correlation comes out to .097
Now, I try grouping the variables by Issue Date and by Age. and then I calculated the weighted redemption rate weighted by original balance, as well as the weighted incentive weighted by original balance. Now, when I analyze teh correlation between the new redemption rate and the new incentive, I get a much higher correlation. It comes out to about .33.

Any ideas why the correlation woudl jump so much? I can't seem to understand intuitively why ti would jump so much when I am just using the same variables just aggregated. Thanks!
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Re: Statistics Question:

Maclennan, Graeme S.
Jimjohn, I think this might be an example the ecological fallacy?

Regards,
Graeme.


-----Original Message-----
From: SPSSX(r) Discussion [mailto:[hidden email]] On Behalf Of jimjohn
Sent: 17 September 2008 20:56
To: [hidden email]
Subject: Statistics Question:

sorry guys, this isn't related to SPSS but it is related to statistics.
some of the variables in my data set include: Redemption Rate, Incentive,
Issue Date, Age, original balance, etc.
I have about 9 million cases, and I am analyzing the correlation between
redemption rate (between 0 and 100) and incentive (betwen -1 and 1). The
correlation comes out to .097
Now, I try grouping the variables by Issue Date and by Age. and then I
calculated the weighted redemption rate weighted by original balance, as
well as the weighted incentive weighted by original balance. Now, when I
analyze teh correlation between the new redemption rate and the new
incentive, I get a much higher correlation. It comes out to about .33.

Any ideas why the correlation woudl jump so much? I can't seem to understand
intuitively why ti would jump so much when I am just using the same
variables just aggregated. Thanks!
--
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command. To leave the list, send the command
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For a list of commands to manage subscriptions, send the command
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