Unformatted text preview: – repeats a command for each of the values of a variable. • e.g. by edu: sum wage – gives summary statistics for the wage for each value of education 5. corr var1 var2 var3 – gives the Pearson linear correlation coeﬃcient for a set of variables • corr wage edu – gives the correlation coeﬃcient between wage and edu . Re-member that correlation does not imply causation. In class we went over possible explanations for a positive correlation. 6. scatter var1 var2 – gives a scatter plot of the two variables. Useful to gain intuition 1...
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- Winter '07
- Econometrics, Correlation and dependence, Pearson product-moment correlation coefficient, Correlation does not imply causation, Covariance and correlation, Spearman's rank correlation coefficient