In statistics, 'r' refers to the Pearson correlation coefficient, a measure that indicates the strength and direction of a linear relationship between two variables. The value of 'r' ranges from -1 to 1, where -1 indicates a perfect negative correlation, 1 indicates a perfect positive correlation, and 0 suggests no correlation at all. Understanding 'r' is crucial for interpreting the results of statistical analyses and assessing relationships in data.