| Correlation Coefficient
The correlation coefficient is an important concept. What is a correlation coefficient? Below is a definition of a correlation coefficient.
Correlation Coefficient Definition:
A correlation coefficient is a quantitative measure of the association between two variables.
A correlation coefficient can range from -1 to 1. A -1 would be a perfect negative correlation, and a 1 would be a perfect positive correlation. A 0 would reflect no association at all between two variables.
Negative Correlation and Positive Correlation:
A negative correlation reflects that higher numbers for one variable are associated with lower numbers for the other variable. A positive correlation reflects that higher numbers for one variable are associated with higher numbers for the other variable.
It is important to keep in mind that we do not conclude that all correlation coefficients greater than 0 or less than 0 are real associations. We have to conduct a statistical analysis to find out how likely it would be that the finding is due to chance. Generally, a correlation coefficient is considered to be statistically significant, and thus reflecting a real association, if the chance probability is less than .05.