Correlation Coefficient Formula:
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R (correlation coefficient) measures the strength and direction of the linear relationship between two variables. R² (coefficient of determination) represents the proportion of variance in the dependent variable that's predictable from the independent variable.
The calculator uses the correlation coefficient formula:
Where:
Explanation: The correlation coefficient ranges from -1 to +1, where -1 indicates perfect negative correlation, +1 indicates perfect positive correlation, and 0 indicates no linear correlation.
Details: Correlation analysis helps identify relationships between variables, but it's important to remember that correlation does not imply causation. R² indicates how well the independent variable explains the variation in the dependent variable.
Tips: Enter the covariance between X and Y, and the standard deviations for both variables. All values must be valid numerical values with standard deviations greater than zero.
Q1: What does a high R value indicate?
A: A high absolute R value (close to ±1) indicates a strong linear relationship between the variables.
Q2: How is R² interpreted?
A: R² represents the proportion of variance explained. For example, R² = 0.80 means 80% of the variance in Y is explained by X.
Q3: Can correlation imply causation?
A: No, correlation only measures association. Causation requires additional evidence from controlled experiments or theoretical justification.
Q4: What are the limitations of correlation analysis?
A: Correlation only measures linear relationships, can be influenced by outliers, and doesn't account for confounding variables.
Q5: When should I use this calculator?
A: Use this calculator when you have calculated covariance and standard deviations separately and want to determine the correlation coefficient and coefficient of determination.