Describe point-biserial correlation and phi coefficient.

Point-biserial correlation and phi coefficient are two statistical measures used to assess the relationship between categorical and continuous variables. While they are conceptually similar in that both quantify the strength and direction of the association between two variables, their application differs depending on the nature of the variables involved.

### Point-Biserial Correlation

The point-biserial correlation is a special case of the Pearson correlation, designed to measure the relationship between one continuous variable and one dichotomous (binary) variable. The dichotomous variable can take only two possible values, typically represented as 0 and 1, which might correspond to different categories such as "male" vs. "female," "pass" vs. "fail," or "yes" vs. "no."

Mathematically, the point-biserial correlation (r_pb) is calculated by a modified version of the Pearson correlation coefficient formula:

\[
r_{pb} = \frac{M_1 - M_0}{s} \sqrt{\frac{n_1 n_0}{n^2}}
\]

Where:

- \(M_1\) and \(M_0\) are the means of the continuous variable for the two groups (1 and 0, respectively).
- \(n_1\) and \(n_0\) are the number of observations in each group (for the dichotomous variable).
- \(n\) is the total sample size.
- \(s\) is the standard deviation of the continuous variable across all observations.

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