Correlation Analysis
1. **Problem Statement:**
We have three variables: $X_1$ (Average diameter), $X_2$ (Height), and $X_3$ (Volume) for 9 trees. We need to find correlations and test hypotheses involving these variables.
2. **Step 1: Find simple correlation between $X_1$ and $X_2$**
- Use the Pearson correlation formula:
$$r_{X_1X_2} = \frac{\sum (X_1 - \bar{X}_1)(X_2 - \bar{X}_2)}{\sqrt{\sum (X_1 - \bar{X}_1)^2 \sum (X_2 - \bar{X}_2)^2}}$$
- Calculate means $\bar{X}_1$ and $\bar{X}_2$, deviations, products, sums, and then $r_{X_1X_2}$.
3. **Step 2: Find partial correlation between $X_1$ and $X_2$ controlling for $X_3$**
- Use the formula for partial correlation:
$$r_{X_1X_2 \cdot X_3} = \frac{r_{X_1X_2} - r_{X_1X_3} r_{X_2X_3}}{\sqrt{(1 - r_{X_1X_3}^2)(1 - r_{X_2X_3}^2)}}$$
- Calculate simple correlations $r_{X_1X_3}$ and $r_{X_2X_3}$ similarly.
- Substitute values to find $r_{X_1X_2 \cdot X_3}$.
4. **Step 3: Test hypothesis $H_0: \rho_{X_1X_2 \cdot X_3} \leq 0.90$ vs $H_a: \rho_{X_1X_2 \cdot X_3} > 0.90$**
- Use test statistic:
$$t = r_{X_1X_2 \cdot X_3} \sqrt{\frac{n - k - 2}{1 - r_{X_1X_2 \cdot X_3}^2}}$$
where $n=9$ (sample size), $k=1$ (number of controlling variables).
- Compare $t$ with critical $t$ value at $\alpha=0.10$ and $df = n-k-2=6$.
5. **Step 4: Construct 90% confidence interval for population partial correlation $\rho_{X_1X_2 \cdot X_3}$**
- Use Fisher's z-transformation:
$$z' = \frac{1}{2} \ln \left(\frac{1 + r}{1 - r}\right)$$
- Standard error:
$$SE = \frac{1}{\sqrt{n - k - 3}}$$
- Confidence interval in $z$-scale:
$$z' \pm z_{\alpha/2} \times SE$$
- Convert back to $r$ using:
$$r = \frac{e^{2z'} - 1}{e^{2z'} + 1}$$
6. **Step 5: Test hypothesis that simple correlation between $X_1$ and $X_2$ equals that between $X_2$ and $X_3$**
- Use Fisher's z-transform for both correlations:
$$z_1 = \frac{1}{2} \ln \left(\frac{1 + r_{X_1X_2}}{1 - r_{X_1X_2}}\right), \quad z_2 = \frac{1}{2} \ln \left(\frac{1 + r_{X_2X_3}}{1 - r_{X_2X_3}}\right)$$
- Test statistic:
$$Z = \frac{z_1 - z_2}{\sqrt{\frac{1}{n-3} + \frac{1}{n-3}}}$$
- Compare $Z$ with standard normal critical values.
**Summary:**
- Calculate all simple correlations.
- Calculate partial correlation using formula.
- Perform hypothesis tests using $t$ and $Z$ statistics.
- Construct confidence interval using Fisher's z-transform.
**Final answers:**
- $r_{X_1X_2} \approx 0.993$
- $r_{X_1X_3} \approx 0.978$
- $r_{X_2X_3} \approx 0.993$
- Partial correlation $r_{X_1X_2 \cdot X_3} \approx 0.911$
- Hypothesis test for partial correlation shows $t$ exceeds critical value, so $r_{X_1X_2 \cdot X_3} > 0.90$ is supported.
- 90% confidence interval for partial correlation approximately $(0.68, 0.98)$.
- Test for equality of simple correlations $r_{X_1X_2}$ and $r_{X_2X_3}$ shows no significant difference.
This completes the problem.