Question

Please explain the correlation coefficient of determination in a paragraph.

Answer 1

Coefficient of correlation(r) gives the degree of relationship between two variables (independent and dependent). Its range is (-1, 1). If the value is close to -1 then it indicates that the two variables are inversely related i.e. increase in one results in decrease in another. If the value is close to 1, then it indicates that the two variables are directly proportional i.e increase in one results in increase of another. If the coefficient of correlation is close to 0, then it indicates there is no linear relationship between two variables.

Now, coefficient of determination (r^2) is square of Coefficient of correlation(r). It indicates how much variability is produced by one variable on the other. It ranges from 0 to 1.