Correlation Coefficient

Definition

The correlation coefficient measures the strength and direction of a linear relationship between two variables on a scatterplot. It ranges from -1 to 1 where -1 indicates perfect negative correlation, 0 indicates no correlation, and 1 indicates perfect positive correlation.

Related terms

Scatterplot:

A graph used to display values for typically two variables for a set of data.

Linear Relationship: When there’s an increase or decrease in one variable that corresponds with an increase or decrease in another variable.

Variable: Any factor that can be controlled, changed, or measured in an experiment.