Your friend is working on a research project examining the correlation between socioeconomic standing and levels of education. He would like to use lambda as his PRE measure. Write an e-mail to him explaining why gamma would be a better and more accurate form of PRE measure.
What will be an ideal response?
The independent and dependent variables are not all that clear in this analysis because we could claim that education leads to higher socioeconomic status or that socioeconomic status leads to higher levels of education. Therefore we will use the asymmetric measure Gamma to assess the strength and direction of this association.
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