Question

Explain how Pearson's Coefficient is utilized to determine the shape of data.

Answer 1

Pearson coefficient is used in skewness problems where the shape of the data is determined. Pearson coefficient is calculated on the basis of mean, median of the data and standard deviation of the data. If Pearson coefficient comes out to be negative, then data is negatively skewed, if it is positive, then data is positively skewed. Here, the degree of skewness depends upon the large positive or negative value of the Pearson coefficient

Pearson coefficient is also used to calculate correlation between two variables and it tells the direction of the relationship, and magnitude of the relations. It makes correlation coefficient to vary between -1 to +1.