Spurious correlation between ratios with a common divisor

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.

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Year of publication:	1999
Authors:	Kim, Ji-Hyun
Published in:	Statistics & Probability Letters. - Elsevier, ISSN 0167-7152. - Vol. 44.1999, 4, p. 383-386
Publisher:	Elsevier
Subject:	Coefficient of variation Spurious correlation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005138370