Table 7.1 shows the values of the product moment correlation coefficients between 5 variables. These variables are the cost per unit of electricity in euros and the amount of electricity generated in GW by four different types of generation, for a very large sample of observations.
For example, the correlation coefficient between the amount of electricity generated by wind and the amount of electricity generated by gas is - 0.59. The ‘storage’ category consists of battery and other types of electricity taken from stored reserves. All of the correlations are significant at the 10% level.
Table 7.1
| Cost | Gas | Wind | Solar | Storage |
| Cost | 1.00 | | | | |
| Gas | 0.42 | 1.00 | | | |
| Wind | -0.26 | -0.59 | 1.00 | | |
| Solar | -0.18 | -0.21 | -0.07 | 1.00 | |
| Storage | 0.12 | 0.35 | -0.38 | -0.30 | 1.00 |
Table 7.2 shows standard guidelines for effect sizes.
Table 7.2
| Product moment correlation coefficient | Effect size |
| 0.1 ⩽ r < 0.3 | Small |
| 0.3 ⩽ r < 0.5 | Medium |
| r ⩾ 0.5 | Large |
The student analyses these data for effect size.
Explain how the very large sample size relates to the interpretation of the correlation coefficient of - 0.07 between the amount of electricity generated by wind and the amount of
electricity generated by solar, as shown in Table 7.1.