A Sample Correlation Coefficient

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A Sample Correlation Coefficient. In this section we will present a statistic, called the sample . A correlation coefficient of 1 means that for every positive increase in one variable, there is a positive increase of a fixed proportion in the other.

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The correlation coefficient is a measure of how well a line can describe the relationship between x and y. The sample correlation coefficient (r) is a measure of the closeness of association of the points in a scatter plot to a linear regression . Consider the data set of paired values ( x 1 , y 1 ) , ( x 2 , y 2 ) , … , ( x n , y n ).

A correlation coefficient of 1 means that for every positive increase in one variable, there is a positive increase of a fixed proportion in the other.

The correlation coefficient is a measure of how well a line can describe the relationship between x and y. Thus it is essentially a normalized . Consider the data set of paired values ( x 1 , y 1 ) , ( x 2 , y 2 ) , … , ( x n , y n ). The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.