Correlation Coefficient

Front

What is the correlation coefficient?

Back

A statistical measure that describes the strength and direction of a relationship between two variables, ranging from -1 to 1.

Front

What does a correlation coefficient of 1 indicate?

Back

A perfect positive correlation, meaning as one variable increases, the other variable also increases.

Front

What does a correlation coefficient of -1 indicate?

Back

A perfect negative correlation, meaning as one variable increases, the other variable decreases.

Front

What does a correlation coefficient of 0 indicate?

Back

No correlation, meaning there is no predictable relationship between the two variables.

Front

What is a positive correlation?

Back

A relationship where as one variable increases, the other variable also increases.

Front

What is a negative correlation?

Back

A relationship where as one variable increases, the other variable decreases.

Front

How can you estimate the correlation coefficient from a scatterplot?

Back

By observing the direction and tightness of the points; a tighter cluster of points along a line indicates a stronger correlation.

Front

What is the formula for calculating the correlation coefficient (r)?

Back

r = (nΣxy - ΣxΣy) / sqrt[(nΣx^2 - (Σx)^2)(nΣy^2 - (Σy)^2)] where n is the number of pairs.

Front

What is the range of the correlation coefficient?

Back

The correlation coefficient ranges from -1 to 1.

Front

What does a correlation coefficient close to 0 imply?

Back

It implies a weak or no linear relationship between the two variables.