Tests, Chi-Squares, Phi, Correlations: It's All The Same Stuff
Tests, Chi-Squares, Phi, Correlations: It's All The Same Stuff
In this handout, I provide illustrations of the connection between t-tests and correlations and between chi-
square and correlation.
Correlation equivalents
Correlation is a statistic that describes the association between two variables. The correlation statistic can be
used for continuous variables or binary variables or a combination of continuous and binary variables. In
contrast, t-tests examine whether there are significant differences between two group means. With a t-test, we
have binary independent variable (two groups, which could be coded 0 and 1) and a continuous dependent
variable. If our study is an experiment, then a significant t-test comparing experimental group and control
would suggest that our independent variable has a significant impact (and, therefore association with) the
dependent variable. Significant group differences then imply a correlation between the independent and
dependent variable. The graphs below illustrate that, even if the independent variable has few values, you can
still observe a tendency for the dependent variable to increase in value as the independent variable increases
in value.
Correlations
satisfaction
Notice that the p-values for the two tests are identical. The
rating of type school significant difference between the means for charter and
school type
satisfaction rating Pearson Correlation 1 .728(*)
public schools is the same as testing whether the school
of school Sig. (2-tailed) .017 type is associated with satisfaction. A special shortcut
N 10 10 formula called the point-biserial correlation used for the
type school type Pearson Correlation .728(*) 1 correlation between a binary and continuous variable is
Sig. (2-tailed) .017
N 10 10
equivalent to the Pearson correlation coefficient.
* Correlation is significant at the 0.05 level (2-tailed).
Chi-Square Tests
Symmetric Measures
Correlations
The significance tests for chi-square and correlation will not be exactly the same but will very often give the
same statistical conclusion. Chi-square tests are based on the normal distribution (remember that z2 = χ2), but
the significance test for correlation uses the t-distribution. With large sample sizes (e.g., N > 120) the t and the
normal z-distributions will be the same (or, at least, extremely close). 1
1
This "approximate significance" is reported by most researchers regardless of the sample size. Perhaps this is because, for smaller sample sizes,
there are not any simple recommendations. There does not seem to be much consensus in favor of the Yates continuity correction, and the Fisher
Exact test, which is more powerful, depends on assumption that the marginal frequencies are fixed (determined values as in an experiment).