The correlation coefficient for two variable
What happens if the correlation coefficient for two variables is -1 or 0 or +1?
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Correlation is calculated using the correlation coefficient and represented by the letter r. Correlation coefficient can have values between perfect negative correlation (-1.0) to perfect positive correlation (+1.0). a) The closer r is to +1.0, the more will be chances that the two variables will try to move with each other at the same time. b) The closer r is to -1.0, the more will be the chances that two variables will try to move opposite each other at the same time. c) An r having zero value shows that the variable’s values are not related to each other at all. It is called as statistical independence.
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