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536 QUANTITATIVE DATA ANALYSIS<br />

First, a coefficient is a simple number and must not<br />

be interpreted as a percentage. A correlation of<br />

0.50, for instance, does not mean 50 per cent<br />

relationship between the variables. Further, a<br />

correlation of 0.50 does not indicate twice as much<br />

relationship as that shown by a correlation of 0.25.<br />

A correlation of 0.50 actually indicates more than<br />

twice the relationship shown by a correlation of<br />

0.25. In fact, as coefficients approach +1 or−1, a<br />

difference in the absolute values of the coefficients<br />

becomes more important than the same numerical<br />

difference between lower correlations would be.<br />

Second, a correlation does not necessarily imply<br />

acause-and-effectrelationshipbetweentwofactors,<br />

as we have previously indicated. It should not<br />

therefore be interpreted as meaning that one factor<br />

is causing the scores on the other to be as they<br />

are. There are invariably other factors influencing<br />

both variables under consideration. Suspected<br />

cause-and-effect relationships would have to be<br />

confirmed by subsequent experimental study.<br />

Third, a correlation coefficient is not to be<br />

interpreted in any absolute sense. A correlational<br />

value for a given sample of a population may<br />

not necessarily be the same as that found in<br />

another sample from the same population. Many<br />

factors influence the value of a given correlation<br />

coefficient and if researchers wish to extrapolate<br />

to the populations from which they drew their<br />

samples they will then have to test the significance<br />

of the correlation.<br />

We now offer some general guidelines for<br />

interpreting correlation coefficients. They are<br />

based on Borg’s (1963) analysis and assume that<br />

the correlations relate to 100 or more subjects.<br />

Correlations ranging from 0.20 to 0.35<br />

Correlations within this range show only very<br />

slight relationship between variables although<br />

they may be statistically significant. A correlation<br />

of 0.20 shows that only 4 per cent ({0.20 ×<br />

0.20}×100) of the variance is common to the two<br />

measures. Whereas correlations at this level may<br />

have limited meaning in exploratory relationship<br />

research, they are of no value in either individual<br />

or group prediction studies.<br />

Correlations ranging from 0.35 to 0.65<br />

Within this range, correlations are statistically<br />

significant beyond the 1 per cent level. When<br />

correlations are around 0.40, crude group<br />

prediction may be possible. As Borg (1963) notes,<br />

correlations within this range are useful, however,<br />

when combined with other correlations in a<br />

multiple regression equation. Combining several<br />

correlations in this range can in some cases yield<br />

individual predictions that are correct within an<br />

acceptable margin of error. Correlations at this<br />

level used singly are of little use for individual<br />

prediction because they yield only a few more<br />

correct predictions than could be accomplished<br />

by guessing or by using some chance selection<br />

procedure.<br />

Correlations ranging from 0.65 to 0.85<br />

Correlations within this range make possible group<br />

predictions that are accurate enough for most<br />

purposes. Nearer the top of the range, group<br />

predictions can be made very accurately, usually<br />

predicting the proportion of successful candidates<br />

in selection problems within a very small margin<br />

of error. Near the top of this correlation range<br />

individual predictions can be made that are<br />

considerably more accurate than would occur if<br />

no such selection procedures were used.<br />

Correlations over 0.85<br />

Correlations as high as this indicate a close<br />

relationship between the two variables correlated.<br />

A correlation of 0.85 indicates that the measure<br />

used for prediction has about 72 per cent variance<br />

in common with the performance being predicted.<br />

Prediction studies in education very rarely yield<br />

correlations this high. When correlations at this<br />

level are obtained, however, they are very useful<br />

for either individual or group prediction.<br />

Regression analysis<br />

Regression analysis enables the researcher to predict<br />

‘the specific value of one variable when

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