Correlation Coefficients
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Explain the concept of correlation and how to interpret correlation coefficients of 0.3, 0, and -0.95.
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Solution Summary
The correlation coefficient takes on values ranging between +1 and -1. The following points are the accepted guidelines for interpreting the correlation coefficient:
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The correlation coefficient takes on values ranging between +1 and -1. The following points are the accepted guidelines for interpreting the correlation coefficient:
0 indicates no linear relationship.
+1 indicates a perfect positive linear relationship: as one variable increases in its values, the other variable also increases in its values via an exact linear rule.
-1 indicates a perfect negative linear relationship: as one variable increases in its values, the other variable decreases in its values via an exact linear rule.
Values between 0 and 0.3 (0 and -0.3) indicate a weak positive (negative) linear relationship via a shaky ...
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