Correlation and heteroscedasticity I'm studying a dataset and observed a positive correlation between two variables, but when I plot them, it seems that they are heteroscedastics, what conclusions can I get from it ? (Can I really assume that the positive correlation is real ?)

varsa1m

varsa1m

Answered question

2022-10-28

Correlation and heteroscedasticityI'm studying a dataset and observed a positive correlation between two variables, but when I plot them, it seems that they are heteroscedastics, what conclusions can I get from it ? (Can I really assume that the positive correlation is real ?)

Answer & Explanation

dippoliticsxu

dippoliticsxu

Beginner2022-10-29Added 9 answers

Your description is very vague. In the simplest case, suppose you have 10 observations X 1 , , X 10 and 10 observations Y 1 , , Y 10 and you want to find the correlation between them.
If the sample variances S x 2 and X y 2 are very different, that does not interfere with computing or interpreting a correlation. For example if the X-values are X=(1,2,3,4,5,6,7,8,9,10) and the Y-values are Y=(100,200,300,400,500,600,700,800,900,1000), then the variances are quite different, but the correlation is r=1, reflecting the obvious linear relationship between the X's and the Y's.
If you had something more complicated in mind, please explain it in more detail.

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