{"id":1642,"date":"2016-12-24T17:16:53","date_gmt":"2016-12-24T21:16:53","guid":{"rendered":"http:\/\/www.papaworx.com\/Book\/?page_id=1642"},"modified":"2017-01-31T20:26:52","modified_gmt":"2017-02-01T00:26:52","slug":"8-8","status":"publish","type":"page","link":"https:\/\/www.stuehlingen.online\/Book\/?page_id=1642","title":{"rendered":"8-8"},"content":{"rendered":"<p style=\"text-align: justify;\"><span class=\"Standard\"> Merchants (<a class=\"Internet_20_link\" href=\"\/Stuehlingen\/tree.php?t=R1\"><span class=\"Internet_20_link\">R1<\/span><\/a>), (<a class=\"Internet_20_link\" href=\"\/Stuehlingen\/tree.php?t=B1.2.2\"><span class=\"Internet_20_link\">B1.2.2<\/span><\/a>), (<a class=\"Internet_20_link\" href=\"\/Stuehlingen\/tree.php?t=R2\"><span class=\"Internet_20_link\">R2<\/span><\/a>), and (<a class=\"Internet_20_link\" href=\"\/Stuehlingen\/tree.php?t=B1.2.1.2\"><span class=\"Internet_20_link\">B1.2.1.2<\/span><\/a>) had a markedly higher frequency of debts than the rest. But rather than just eyeballing the similarity between the merchants, we can use a statistical method called Pearson Product Moment<span class=\"Footnote_20_Reference\"><span class=\"T9\"><span class=\"Footnote_20_anchor\" title=\"Footnote: Pearson et al., Note on Regression, 000. &lt;pg #?&gt;\"><a id=\"body_ftn34\" href=\"#ftn34\">34<\/a><\/span><\/span><\/span> to compare the patterns of the full 131-merchant sample. According to this method, for each merchant we plot the sum of grain, cattle and horse, and real-estate deals on the x-axis against their number of owed claims on the y-axis (figure 10).<\/span><\/p>\n<!-- cp_caption_start --><span class=\"captioned_image alignleft\" style=\"width: 400px\"><span id=\"attachment_2777\"  class=\"wp-caption\"><a href=\"\/Book\/img\/Goods-Credit Correlation.png\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-2777\" src=\"\/Book\/wp-content\/uploads\/2017\/01\/Goods-Credit-Correlation-e1484691475755.png\" alt=\"sales vs loans\" width=\"400\" height=\"288\" \/><\/a><\/span><small class=\"wp-caption-text\">Figure 10. Correlation between goods sold and credit claims collected per merchant.<\/small><\/span><!-- cp_caption_end -->\n<p style=\"text-align: justify;\"><span class=\"Standard\"><span class=\"T21\">With a sample size of 131 and a Pearson Product Moment R<span class=\"Footnote_20_anchor\">2<\/span><\/span> = 0.65, the likelihood of falsely rejecting the null hypothesis (no correlation exists between goods sold and credit extended) is significantly less than one in one hundred.<span class=\"Footnote_20_Reference\"><span class=\"Footnote_20_anchor\" title=\"Footnote: Cohen, Statistical Power Analysis, 93.\"><a id=\"body_ftn35\" href=\"#ftn35\">35<\/a><\/span><\/span> In other words, it is practically certain that the total count of collected claims is highly proportional to the number of sales. A statistically savvy reader might object that Marum, the super salesman, distorts the statistics. True, but even if we repeat the calculation, omitting Marum, we still get a resulting R<span class=\"Footnote_20_anchor\">2<\/span> = 0.616, which is still highly significant, better than 99%.<\/span><\/p>\n<p class=\"P22\"><span class=\"footnodeNumber\"><a id=\"ftn34\" class=\"Footnote_20_Symbol\" href=\"#body_ftn34\">34<\/a><\/span>Pearson et al., Note on Regression.<\/p>\n<p class=\"P23\"><span class=\"footnodeNumber\"><a id=\"ftn35\" class=\"Footnote_20_Symbol\" href=\"#body_ftn35\">35<\/a><\/span>Cohen, &#8220;Statistical Power Analysis,&#8221; 93.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Merchants (R1), (B1.2.2), (R2), and (B1.2.1.2) had a markedly higher frequency of debts than the rest. But rather than just eyeballing the similarity between the merchants, we can use a statistical method called Pearson Product Moment34 to compare the patterns of the full 131-merchant sample. According to this method, for each merchant we plot the [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"parent":1570,"menu_order":108,"comment_status":"open","ping_status":"closed","template":"new_page.php","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/pages\/1642"}],"collection":[{"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1642"}],"version-history":[{"count":0,"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/pages\/1642\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=\/wp\/v2\/pages\/1570"}],"wp:attachment":[{"href":"https:\/\/www.stuehlingen.online\/Book\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}