Pearson Coefficient

DEFINITION of 'Pearson Coefficient'

A type of correlation coefficient that represents the relationship between two variables that are measured on the same interval or ratio scale.

BREAKING DOWN 'Pearson Coefficient'

Numerically, the Pearson coefficient is represented the same way as a correlation coefficient that is used in linear regression; ranging from -1 to +1. A value of +1 is the result of a perfect positive relationship between two or more variables. Conversely, a value of -1 represents a perfect negative relationship. It has been shown that the Pearson coefficient can be deceptively small when it is used with a non-linear equation.

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RELATED FAQS
  1. Can the correlation coefficient be used to measure dependence?

    Understand the coefficient of correlation and its use in determining the relationship between two variables through the concepts ... Read Answer >>
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  3. What does it mean if the correlation coefficient is positive, negative, or zero?

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  4. What is the difference between a copay and a deductible?

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  6. Which of the following statements is (are) true with respect to the coefficient ...

    The correct answer is: c) (I) is incorrect because coefficient of determination will always be positive, whereas correlation ... Read Answer >>
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