The Linear Correlation Coefficient

Read this discussion on linear correlation. You will learn what the linear correlation coefficient is, how to compute it, and what it tells us about the relationship between two variables x and y.

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.