1.8 Measuring Correlation

 

The correlation coefficient is the variable we use to measure linear correlations.  It takes the letter r and .  r tells you everything you need to know about a linear correlation: direction and strength.  If  then the linear regression will be positive and the closer r gets to 1 the stronger the correlation will be.  Similarly,  indicates a negative correlation with strength increasing as r approaches -1.

 

Pearson’s correlation coefficient formula: , where  is the standard deviation of the independent variable,  is the standard deviation of the dependent variable, and  is the covariance of the two.

 

Covariance:

This formula has been worked out to

 

Do p.581# ‘Use technology for the correlation coefficient’

 

Coefficient of Determination (): the coefficient of determination is used to determine the strength of a correlation, regardless of the linearity of it-this means you use  to determine the strength of a non-linear correlation, or to determine which non-linear correlation is the strongest.

 

p.580#1-3

p.582#1-7