The Financial gap between rich and poor people could be contributing to a higher crime rate

Correlation coefficient =0.49

The data in the table and chart above was extracted from the world bank public data.

Correlation was calculated using "Pearson's correlation", Quote from Wikipedia:

Pearson product-moment correlation coefficient is a measure of the correlation (linear dependence) between two variables X and Y, giving a value between +1 and -1 inclusive. It is widely used in the sciences as a measure of the strength of linear dependence between two variables. The correlation coefficient ranges from -1 to 1. A value of 1 implies that a linear equation describes the relationship between X and Y perfectly, with all data points lying on a line for which Y increases as X increases. A value of -1 implies that all data points lie on a line for which Y decreases as X increases. A value of 0 implies that there is no linear correlation between the variables.

The table below is anInterpretation of the degree of correlation between two variables:

Correlation Negative Positive
None -0.09 to 0.0 0.0 to 0.09
Small -0.3 to -0.1 0.1 to 0.3
Medium -0.5 to -0.3 0.3 to 0.5
Strong -1.0 to -0.5 0.5 to 1.0

The calculated value of the correlation coefficient between the GINI index of income distribution and Intentional homicides rate is 0.49, which means that the homicide rate is likely to increase as the gap between the rich and poor people increases.

This entry was posted in General Economy. Bookmark the permalink.

Comments are closed.