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Partial Correlation
Partial correlation
Introduction

Whereas the product moment or simple correlation is a measure of association describing the linear association between two variables, a partial correlation coefficient measures the association between two variables after controlling for or adjusting for the effects of one or more additional variables. This statistic is used to answer the following questions:

  • How strongly are sales related to advertising expenditures when the effect of price is controlled?
  • Is there an association between market share and size of the sales force after adjusting for the effect of sales promotion?
  • Are consumers’ perceptions of quality related to their perceptions of prices when the effect of brand image is controlled?
Key Features

Suppose one wanted to calculate the association between X and Y after controlling for a third ...

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