Determining the Correlation Coefficient
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Calculate the correlation between age and tenure with the company. Explain results. I have worked up the data below, but am not really sure how to correlate it. First, how do I determine which is the predictor and which is the response variable?
Tenure
Age <2 yrs 2 to 5 yrs >5 yrs Total
21 & under 20 26 2 48
% Total 7% 9% 1% 17% (age mean for 21 and under)
22 to 49 121 37 36 194
% Total 42% 13% 13% 68% (age mean for 22 - 49)
50 & over 29 5 12 46
% Total 10% 2% 4% 16% (age mean for 50 and over)
170 68 50 288
% Total 59% 24% 18% 101% (rounded up)
59% = tenure mean for < 2 yrs
24% = tenure mean for 2 to 5 yrs
18% = tenure mean for >5 yrs
Do I add up the means for each age and tenure and the average it? And work up the Std deviations from there?
See attachment.
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