Estimation of the correlation coefficient in the case of a bivariate normal population when one of the variables is dichotomized

It is shown that the problem of estimation of the correlation coefficient of a bivariate normal population when one of the variables is dichotomized may be attacked with “probit analysis” methods. This represents an extension of the work of Gillman and Goode (3), as it was possible to find by this approach an approximation to the large-sample variance of the resulting estimateG ofρ. An empirical investigation was undertaken with the object of obtaining some information about the distribution ofG for large sample size. Methods for determining the “pass-fail” cut-off are considered.