Coren and Hakstian (1990) identified a serious methodological problem that arises in auditory research because of interaural correlation. When measures from both ears of the subjects are pooled together in an experimental design that assumes independence of measures, there can be spuriously high apparent statistical significance. The present paper provides further evidence in support of Coren and Hakstian's argument and also derives a formula that effectively corrects inflated test statistics resulting from interaural correlation. This formula is a special case of a more general one that applies in many other experimental contexts in which nonindependence of measures is a problem. We found that statistical tests based on our formula have somewhat greater power to detect differences than the kind of correction method advocated by Coren and Hakstian.