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I have a data set that is represented below, but much longer. How can I find if there is a statistical relationship between business category and business score?

Business Name     Business Category        Business Score
Business1         Shopping                      1
Business2         Eating                        1
Business3         Shopping                      2
Business4         Shopping                      2
Business5         Eating                        1
Business6         Manicure                      3
Business7         Haircut                       2
Business8         Haircut                       3
Business9         Eating                        3
Business10        Manicure                      3
Business11        Haircut                       3
Business12        Eating                        1
Business13        Shopping                      2
Business14        Eating                        3
Business15        Manicure                      1
Business16        Haircut                       3
Business17        Haircut                       2
Business18        Shopping                      3
Business19        Eating                        2
Business20        Manicure                      3
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2 Answers 2

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Given that business is categorical, you can't use correlation.

Business score looks like it is a 1-5 rating or something like that. If that is the case, I would recommend ordinal logistic regression In SAS use PROC LOGISTIC. In R there is polr. The dependent variable would be "score" and the independent variable "type of business".

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  • $\begingroup$ The OP appears to use the term "correlation" in the nontechnical sense of a "relationship." A constructive way to interpret that is that it's a request to identify significant differences in score among business categories. $\endgroup$
    – whuber
    Mar 12, 2014 at 16:14
  • $\begingroup$ Hi, I guess I should not have used the term correlation. I am only looking for a significant relationship between business category and business score. Does the above answer still satisfy this? $\endgroup$
    – metersk
    Mar 12, 2014 at 16:17
  • $\begingroup$ Yes it does. Do you know how to do it? $\endgroup$
    – Peter Flom
    Mar 12, 2014 at 17:15
  • $\begingroup$ @PeterFlom I believe so? I imported the arm package and the data and did this: x <- polr(Business.Category ~ Score, data = data). Then I did summary(x) and got this output, pastebin.com/sBGg1xEG, although I'm not really sure what to make of it. $\endgroup$
    – metersk
    Mar 12, 2014 at 18:34
  • $\begingroup$ @PeterFlom Also, are there any other descriptive statistics I can show on x that would show a significant relationship, maybe p-value or r-squared? $\endgroup$
    – metersk
    Mar 12, 2014 at 18:50
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I think you can try a simple Chi-square test. Make a frequency table of "Business Category" vs "Business Score" and then go for a chi square test. I don't have R in this PC. Later I will post some code.

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