Coefficient of Correlation and Coefficient of Determination

The coefficient of correlation is a statistical measure that indicates the degree of association between two variables. It ranges from -1 to +1.

Coefficient of Correlation = -0.9

This means that there is a strong negative correlation between the two variables. As one variable increases, the other variable decreases.

Coefficient of Determination

The coefficient of determination, also known as R-squared, is a statistical measure that shows the proportion of variance in one variable that can be explained by the other variable. It ranges from 0 to 1.

Formula:

Coefficient of Determination = (Coefficient of Correlation)^2

Calculating Coefficient of Determination

In this case, the coefficient of determination can be calculated as follows:

Coefficient of Determination = (-0.9)^2

Coefficient of Determination = 0.81

Interpreting Coefficient of Determination

This means that 81% of the variation in one variable can be explained by the other variable. The remaining 19% of the variation is due to other factors that are not accounted for in the analysis.

Conclusion

In conclusion, the coefficient of correlation and coefficient of determination are important statistical measures that help to understand the relationship between two variables. In this case, a coefficient of correlation of -0.9 indicates a strong negative correlation, while a coefficient of determination of 0.81 indicates that 81% of the variation in one variable can be explained by the other variable.

R^2=-0.9^2
=0.81