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Measures of
Correlation
Measures of Correlation
The correlation coefficient is a value that indicates how strong or weak is the
relationship between variables.
The coefficient can take any values from -1 to +1.
The interpretations of the values are:
+1 indicates a Perfect Positive Correlation which means that the variables
are directly proportional to each other and moving at the same direction.
0 - No Correlation at all
-1 indicates a Perfect Negative Correlation which means that the variables
are moving in opposite direction, that they are inversely proportional to each
other.
Interpreting the Sum of Correlation Coefficient.
Scatter Diagram
Using the Scatter Diagram also enables us to see the relationship that
exists between two variables. It shows how the variables are related.
Pearson Correlation Coefficient