coefficient of correlation (r)

  

Definition

Statistical measure of the linear relationship (correlation) between a dependent-variable and an independent variable. Represented by the lowercase letter 'r', its value varies between -1 and 1 : 1 means perfect correlation, 0 means no correlation, positive values means the relationship is positive (when one goes up so does the other), negative values mean the relationship is negative (when one goes up the other goes down). Also called correlation coefficient. See also correlation.

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  • Our analysis division, upon analyzing the coefficient of correlation, determined that the correlation between profit and investment shows that the company has been very successful in the past year.

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  • The coefficient of correlation that was measured in the chemistry laboratory was deemed to have a negative value, indicating that the experiment was a success.

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  • You should try and familiarize yourself with the coefficient of correlation so that you are prepared to deal with any changes.

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