Exact test critical values for correlation testing with application

  • Authors:
  • Ching-Hui Chang;Jyh-Jiuan Lin;Nabendu Pal

  • Affiliations:
  • Department of Applied Statistics and Information Science, Ming Chuan University, Taoyuan, Taiwan, ROC;Department of Statistics, Tamkang University, Tamsui, Taipei County, Taiwan, ROC;Department of Mathematics, University of Louisiana at Lafayette, Lafayette, Louisiana

  • Venue:
  • WSEAS Transactions on Mathematics
  • Year:
  • 2008

Quantified Score

Hi-index 0.00

Visualization

Abstract

Tables of critical values for the exact test method based on the maximum likelihood estimator (MLE) have been obtained to test a hypothesis on the correlation coefficient between the components of a bivariate normal random vector. The exact test is then compared, in terms of size and power, with the other popular methods, namely - the 'z - test', the 'modified z - test' and the 't - test'. While these popular methods have almost identical size and power to the exact test for large samples, their small sample performance is far from satisfactory as evident from our extensive numerical computations. Thus, our tables of critical values are useful when sample size is not large (i.e., ≤ 30 ). Also, it is demonstrated through a real-life dataset how the tables of critical values can be used for interval estimation.