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Statistics · Data presentation

Chapter 1 · 3

The idea

Measuring correlation (the PMCC)

The product moment correlation coefficient r as a number between −1 and 1 measuring linear correlation — computing it from the summary statistics S_xy, S_xx, S_yy, interpreting it in context, and why coding leaves it unchanged.

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Statistics · Data presentation

Measuring correlation (the PMCC)

The product moment correlation coefficient r as a number between −1 and 1 measuring linear correlation — computing it from the summary statistics S_xy, S_xx, S_yy, interpreting it in context, and why coding leaves it unchanged.

Why it works

A number for the cloud

A scatter diagram lets you describe correlation — positive or negative, strong or weak — but the product moment correlation coefficient (PMCC), written rr, puts a number on it. It always lies in −1≤r≤1,-1 \le r \le 1, where r=1r = 1 is perfect positive linear correlation (all points exactly on a rising line), r=−1r = -1 is perfect negative, and r=0r = 0 is no linear correlation at all. The closer ∣r∣|r| is to 11, the tighter the cloud hugs a straight line.

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