Cash Counts There’s a special situation in which you can measure dependence using either the correlation or Cramer’s V. Suppose both variables indicate group membership. One variable might distinguish...

Cash Counts There’s a special situation in which you can measure dependence using either the correlation or Cramer’s V. Suppose both variables indicate group membership. One variable might distinguish male from female customers, and the other whether the customer uses a credit card, as in this example. These variables define a contingency table for a sample of 150 customers at a department store.

(a) Compute the value of Cramer’s
 for this table.

(b) Find the correlation between the numerical variables Sex (coded as 1 for male, 0 for female) and Cash (coded 1 for those paying with cash, 0 otherwise). Use the counts in the table to manufacture these two columns.

(c) What’s the relationship between Cramer’s
 and the correlation?