How do you calculate and interpret the correlation coefficient in a data set?
Answer 1
Wendy Baker
The correlation coefficient, denoted as ‘r’, quantifies the strength and direction of a linear relationship between two variables. It ranges from -1 to 1. Calculate it using the formula: r = Σ[(Xi – X̄)(Yi – Ȳ)] / [√Σ(Xi – X̄)² * Σ(Yi – Ȳ)²]. An ‘r’ close to 1 or -1 indicates a strong relationship, while an ‘r’ near 0 indicates a weak or no linear relationship.
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