RELATION BETWEEN PAY AND STANDARD OF LIVING 
27 
tempting to account for the influence of the schooling of the two 
individuals rather than of one only, evidences of the low rela- 
tions between schooling and the standard of living were regarded 
as suggestive of further, analyses of the data. As a further test 
of the relation of schooling to expenditures, average expenditures 
were obtained for groups of families sorted on the basis of grades 
of schooling of the operator and again of the home maker from 
years or grades up to 16 years or grades. About the same rela- 
tions as shown in Table 11 were apparent. The most significant 
rises in expenditures in all three terms of measurement appear to 
start somewhere between the fifth and the eighth grade and to con- 
tinue up through the sixteenth grade, that is, the fourth year in 
college. This being true, schooling as referred to in further analy- 
ses is in terms of combined grades of operator and home maker, 
except where specified otherwise. 
FURTHER CONSIDERATION OF RELATION OF FACTORS BY 
METHOD OF GROSS CORRELATION 
The relation of the several criteria of the ability to pay and of 
the factors influencing the desires or demands of the family to the 
standard of living, as shown by the tabular method, are presented 
more concisely though in less detail, by the method of gross cor- 
relation 11 in Table 12. Those factors regarded as reflecting the 
farm business resources in the ability to pay are listed separately. 
Table 12. — Coefficients of gross correlation for criteria of ability to pay and 
factors influencing desires for and demands on family living and the stand- 
ard of living in terms of expenditures per family, per cost-consumption unit 
and percentage of all expenditures per cost-consumption unit for advance- 
ment, for year ended December 31, in farm homes of selected localities of 
Kentucky, Tennessee, and Texas 
Factors or criteria selected 
Expenditures 
Coefficients of correlation 
Net worth of farmer 
Average rate of accumulation. 
Number of years since the farmer began his earning life 
Number of persons in family 
Family living cycle. 
Schooling of both operator and home maker 
Schooling of operator 
Schooling of home maker 
Acres per farm... 
Cost of operation of farm business 
Index of diversity of farm enterprise 
"0.53 
0.56 
.48 
.54 
.10 
.06 
.27 
-.17 
.15 
.00 
.25 
.40 
.31 
.43 
.26 
.43 
.41 
.46 
.53 
.27 
.16 
.15 
0.31 
.22 
.18 
.02 
.16 
.24 
.29 
.29 
.27 
.12 
.21 
• With a sample of 861 cases, the probable error for the coefficient of correlation of 0.00 is ±0.023. For 
this reason, the probable error of the different coefficients of correlation is not shown; any coefficient of 0.12 
or larger may be considered to be due to other causes than chance. 
11 The coefficient of gross correlation, a commonly accepted statistical measure of the 
degree of relation between two series of variable quantities assumes a value between 1 
and — 1. If the coefficient of correlation be 0, there is no relation between the two 
factors considered: that is. they rise or fall independents of each other. If the co- 
efficient equals 1 the correlation is said to be perfect positive: that is. the two factors 
move in the same direction. If the coefficient equals —1, the correlation is perfect 
negative ; that is. the factors vary inversely. 
