Statistics - explanations and formulas


The extent to which two or more variables are related to each other, generally expressed numerically and referred to as a “correlation coefficient.”

The correlation coefficient is measured on a scale that varies from + 1 through 0 to – 1. Complete correlation between two variables is expressed by either + 1 or -1. When one variable increases as the other increases the correlation is positive; when one decreases as the other increases it is negative. Complete absence of correlation is represented by 0.