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The Linear Correlation Coefficient

Key Takeaways

  • The linear correlation coefficient measures the strength and direction of the linear relationship between two variables \(x\) and \(y\).
  • The sign of the linear correlation coefficient indicates the direction of the linear relationship between \(x\) and \(y\).
  • When \(r\) is near 1 or −1 the linear relationship is strong; when it is near 0 the linear relationship is weak.