# Question

There’s a special situation in which you can measure dependence using either the correlation or Cramer’s V (Chapter 5). Suppose both variables indicate group membership. One variable might distinguish male from female customers, and the other whether the customer uses a credit card, as in this example. These variables define a contingency table for a sample of 150 customers at a department store.

(a) Compute the value of Cramer’s V for this table. You may need to look back at Chapter 5.

(b) Find the correlation between the numerical variables Sex (coded as 1 for male, 0 for female) and Cash (coded 1 for those paying with cash, 0 otherwise). Use the counts in the table to manufacture these two columns.

(c) What’s the relationship between Cramer’s V and the correlation?

(a) Compute the value of Cramer’s V for this table. You may need to look back at Chapter 5.

(b) Find the correlation between the numerical variables Sex (coded as 1 for male, 0 for female) and Cash (coded 1 for those paying with cash, 0 otherwise). Use the counts in the table to manufacture these two columns.

(c) What’s the relationship between Cramer’s V and the correlation?

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