Biserial correlation is used to estimate of the relationship between a continuous variable and a dichotomous variable. The term ‘dichotomous’ means ‘cut into two parts.’ The variable of social adjustment can be dichotomous as ‘socially adjusted subjects’ and ‘socially maladjusted subjects’. The two fold classification may appear in the following examples: passes and failures; drop-outs and stay-ins; and successful and unsuccessful. It means that it should be based on artificial dichotomy and not on a natural dichotomy. This video explains the assumption, limitation and computation of biserial correlation.
