Question 14.36

14.36 Ecological correlation. Many studies reveal a positive correlation between income and number of years of education. To investigate this, a researcher makes two plots.

Plot 1: Plot the number of years of education (the explanatory variable) versus the average annual income of all adults having that many years of education (the response variable).

Plot 2: Plot the number of years of education (the explanatory variable) versus the individual annual incomes of all adults (the response variable).

Which plot will display a stronger correlation? (Hint: Which plot will display a greater amount of scatter? In particular, will the variation from individual to individual having the same number of years of education create more or less scatter in Plot 2 compared with plotting the average incomes in Plot 1? What effect will increased scatter have on the strength of the association we observe?)

Note: A correlation based on averages rather than on individuals is called an ecological correlation. Correlations based on averages can be misleading if they are interpreted to be about individuals.