Question

What is the meaning of correlation coefficient? Discuss the statistical significance of correlation coefficient.

Answer 1

Answer:

The correlation coefficient, r , tells us about the strength and direction of the linear relationship between x and y . However, the reliability of the linear model also depends on how many observed data points are in the sample. We need to look at both the value of the correlation coefficient r and the sample size n , together. We perform a hypothesis test of the "significance of the correlation coefficient" to decide whether the linear relationship in the sample data is strong enough to use to model the relationship in the population