Using the Mroz Labor Supply Dataset from the Ecdat Package, we are to select four continuous variables on which to estimate Pearson Product-Moment Correlations.
First, I load and examine the packages and the data that I will need.
## [1] "work" "hoursw" "child6" "child618" "agew"
## [6] "educw" "hearnw" "wagew" "hoursh" "ageh"
## [11] "educh" "wageh" "income" "educwm" "educwf"
## [16] "unemprate" "city" "experience"
## work hoursw child6 child618
## yes:325 Min. : 0.0 Min. :0.0000 Min. :0.000
## no :428 1st Qu.: 0.0 1st Qu.:0.0000 1st Qu.:0.000
## Median : 288.0 Median :0.0000 Median :1.000
## Mean : 740.6 Mean :0.2377 Mean :1.353
## 3rd Qu.:1516.0 3rd Qu.:0.0000 3rd Qu.:2.000
## Max. :4950.0 Max. :3.0000 Max. :8.000
## agew educw hearnw wagew
## Min. :30.00 Min. : 5.00 Min. : 0.000 Min. :0.00
## 1st Qu.:36.00 1st Qu.:12.00 1st Qu.: 0.000 1st Qu.:0.00
## Median :43.00 Median :12.00 Median : 1.625 Median :0.00
## Mean :42.54 Mean :12.29 Mean : 2.375 Mean :1.85
## 3rd Qu.:49.00 3rd Qu.:13.00 3rd Qu.: 3.788 3rd Qu.:3.58
## Max. :60.00 Max. :17.00 Max. :25.000 Max. :9.98
## hoursh ageh educh wageh
## Min. : 175 Min. :30.00 Min. : 3.00 Min. : 0.4121
## 1st Qu.:1928 1st Qu.:38.00 1st Qu.:11.00 1st Qu.: 4.7883
## Median :2164 Median :46.00 Median :12.00 Median : 6.9758
## Mean :2267 Mean :45.12 Mean :12.49 Mean : 7.4822
## 3rd Qu.:2553 3rd Qu.:52.00 3rd Qu.:15.00 3rd Qu.: 9.1667
## Max. :5010 Max. :60.00 Max. :17.00 Max. :40.5090
## income educwm educwf unemprate
## Min. : 1500 Min. : 0.000 Min. : 0.000 Min. : 3.000
## 1st Qu.:15428 1st Qu.: 7.000 1st Qu.: 7.000 1st Qu.: 7.500
## Median :20880 Median :10.000 Median : 7.000 Median : 7.500
## Mean :23081 Mean : 9.251 Mean : 8.809 Mean : 8.624
## 3rd Qu.:28200 3rd Qu.:12.000 3rd Qu.:12.000 3rd Qu.:11.000
## Max. :96000 Max. :17.000 Max. :17.000 Max. :14.000
## city experience
## no :269 Min. : 0.00
## yes:484 1st Qu.: 4.00
## Median : 9.00
## Mean :10.63
## 3rd Qu.:15.00
## Max. :45.00
I selected the following:
## hoursw income educw agew
## Min. : 0.0 Min. : 1500 Min. : 5.00 Min. :30.00
## 1st Qu.: 0.0 1st Qu.:15428 1st Qu.:12.00 1st Qu.:36.00
## Median : 288.0 Median :20880 Median :12.00 Median :43.00
## Mean : 740.6 Mean :23081 Mean :12.29 Mean :42.54
## 3rd Qu.:1516.0 3rd Qu.:28200 3rd Qu.:13.00 3rd Qu.:49.00
## Max. :4950.0 Max. :96000 Max. :17.00 Max. :60.00
## $r
## agew hoursw income educw
## agew 1
## hoursw -0.033 1
## income 0.052 0.15 1
## educw -0.12 0.11 0.36 1
##
## $p
## agew hoursw income educw
## agew 0
## hoursw 0.36 0
## income 0.15 5.6e-05 0
## educw 0.00095 0.0036 0 0
##
## $sym
## agew hoursw income educw
## agew 1
## hoursw 1
## income 1
## educw . 1
## attr(,"legend")
## [1] 0 ' ' 0.3 '.' 0.6 ',' 0.8 '+' 0.9 '*' 0.95 'B' 1
I use the resulting table of p-values from the Pearson Product-Moment Correlations to determine whether there is a correlation between each pair of variables.
My hypotheses are as follows:
\(H_{0}: \rho_ = 0\)
Alternatively
\(H_{1}: \rho_ \neq 0\)
I set \(\alpha\) = 0.05.
I find that my p value, .15, is >.05 (my \(\alpha\)). Therefore, I fail to reject the null hypothesis that there is no correlation between these two variables.
My hypotheses are as follows:
\(H_{0}: \rho_ = 0\)
Alternatively
\(H_{1}: \rho_ \neq 0\)
I set \(\alpha\) = 0.05.
I find that my p value, 5.6e-05, is <.05 (my \(\alpha\)). Therefore, I reject the null hypothesis that there is no correlation between these two variables.
My hypotheses are as follows:
\(H_{0}: \rho_ = 0\)
Alternatively
\(H_{1}: \rho_ \neq 0\)
I set \(\alpha\) = 0.05.
I find that my p value, .00095, is <.05 (my \(\alpha\)). Therefore, I reject the null hypothesis that there is no correlation between these two variables.
My hypotheses are as follows:
\(H_{0}: \rho_ = 0\)
Alternatively
\(H_{1}: \rho_ \neq 0\)
I set \(\alpha\) = 0.05.
I find that my p value, .0036, is <.05 (my \(\alpha\)). Therefore, I fail to reject the null hypothesis that there is no correlation between these two variables.
Correlogram:
Heat map: