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Hello I'm not 100% sure about whether I understand the question - as I see 
it, you may be asking one of two things:

1. Instead of plugging the region A time series into the model as the 
independent variable and then seeing if region B is one of the areas that 
emerges as significantly covarying with activity in A, you extract a time 
series from region A and from region B and see if they correlate. If this 
is what you're asking, then you may well be able to establish the presence 
of functional connectivity between A and B (functional connectivity being 
precisely as you've defined it) but there are both pros and cons to your 
approach (relative to the "standard" approach in which you select only one 
region). Notably, your approach is more model-based and dependent upon your 
predictions. If you select the wrong bit of region B from which to extract 
your signal, you may not observe a correlation. However, the fact that it 
is clearly hypothesis-led removes the multiple comparisons problems since 
the other approach looks across the whole brain for functionally connected 
regions

2. Or perhaps you're asking whether it is a good idea to produce an average 
signal for region A for each subject and an average signal for region B and 
then put them into a multi-subject model and see if the A-B correlation 
occurs across subjects. This is a very different question since it is 
asking: do the subjects who show stronger activation in region A also show 
stronger activation in region B? (This is in contrast to the "standard" 
approach in which you're asking: For a given subject, when A goes up, does 
B go up too?). This approach does not, I think, produce very interesting or 
convincing evidence of functional connectivity. It could just be that all 
subjects are activating A AND B, but some subjects are big activators and 
some subjects are little activators thus producing a correlation across 
subjects. Of course this could be interesting but it doesn't really get at 
functional connectivity as it interests most of us.

Very best
Paul


On Mar 1 2007, Ray Norbury wrote:

>Hi,
>
> I believe that functional connectivty refers to the correlation between 
> the activation time series for two distinct brain regions A & B. If this 
> is true, how does this compare to estimating percent signal change in 
> region A and region B for each subject and entering these values into a 
> correlation analyses? Is the latter option less valid or totally invalid?
>
>Cheers,
>
>Ray
>