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A correlation is a numerical value that describes and measures three characteristics of an X and...

A correlation is a numerical value that describes and measures three characteristics of an X and Y relationship. What are these characteristics? Describe the value of r = 0,89.

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Answer #1

A correlation coefficient is a measure of the linear relationship between two variables X and Y. It is computed as:

Here Cov(X, Y) is the covariance between the two variables and the SD(X) and SD(Y) are the standard deviations.
Note that it only gives the measure of linear relationship and not the measure of other relationships like quadratic or cubic. It ranges from -1 to +1 where -1 represents perfect negative linear relationship and +1 represents perfect positive linear relationship. A value of 0 represents no linear relationship.

A value of 0.89 is a positive linear relationship and as it is very near to +1, this represents a strong positive linear relationship which means that as the value of X increases, value of Y also increases and as value of X decreases, value of Y also decreases.

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