Correlation coefficient

- These are numerical measures of the correlations existing between the independent and the dependent variables

- These are better measures of correlation than scatter diagrams or graphs

- The range for correlation coefficients lies between negative (-ve) 1 and positive (+ve) 1. A correlation coefficient of positive (+1) show that there is perfect positive correlation. A value of negative (-ve) implies that there is perfect negative correlation. A value of 0 implies no correlation at all

- Given chart will be found useful in interpreting correlation coefficients

There are generally two types of correlation coefficients normally used that is: