Correlation Coefficient

In short: Correlation coefficient, written r, is a number from −1 to 1 that tells how strongly and in which direction two variables follow a straight-line pattern.
Algebra 1StatisticsS-ID.C.8
What is Correlation Coefficient?
A scatter plot shows a pattern, and the correlation coefficient \(r\) boils it down to one number. The sign gives the direction: positive when the dots rise, negative when they fall. The size gives the strength: the closer \(|r|\) is to 1, the tighter the dots hug a straight line.
The value \(r = 1\) or \(r = -1\) means every point lies exactly on a line, and \(r\) near 0 means no linear pattern. It measures only straight-line association, so a perfect curve can still produce a value near zero, and a strong value never proves that one variable causes the other.
How to spot it
- A calculator or software prints r after a linear regression for paired data.
- A question asks how strong or how weak a relationship between two measurements is.
- You must match a scatter plot to a value such as 0.9, −0.8 or 0.1.
- A report states that two things are correlated and you must interpret the number.
The method
- Look at the sign of the correlation coefficient first: positive for an upward trend, negative for a downward trend.
- Judge the size of \(|r|\): near 1 is strong, around 0.5 is moderate, near 0 is weak or none.
- Remember that the value only measures linear patterns, so check the scatter plot for curves or outliers.
- State the conclusion in context, without claiming that one variable causes the other.
Correlation Coefficient: solved example
Problem
A city compares each day’s high temperature with the number of ice pops sold at its pool and finds \(r = 0.91\). A second study of hours of TV and quiz average finds \(r = -0.08\). Interpret both.
Solution
The first value is positive and close to 1: a strong positive linear association, with hotter days going along with more sales. It does not prove that heat alone causes the sales.
The second is negative but almost 0: practically no linear association between TV hours and quiz average.
Try it
Question 1
Which relationship is stronger, \(r = -0.95\) or \(r = 0.60\)?
Show the answer
The first. Strength depends on \(|r|\), and 0.95 is larger than 0.60.
Question 2
A student reports \(r = 1.4\). What is wrong?
Show the answer
The value cannot exceed 1 in size, so there was an error in the calculation.
Correlation Coefficient vs. Correlation vs. Causation
The value r only describes how closely two variables move together in a straight pattern. Causation is a claim about why. Even \(r = 0.99\) can come from a hidden third factor, such as hot weather raising both ice cream sales and swimming trips.
Keep going
Lessons
Worksheets and quizzes
- Scatter Plots, Lines of Fit and Two-Way Tables – Worksheet
- Scatter Plots, Lines of Fit and Two-Way Tables – Quiz
- Scatterplots and Correlation – Worksheet
- Scatterplots and Correlation – Quiz
Related words
- Scatter Plot
- Line of Best Fit
- Correlation vs. Causation
- Linear Regression
- Coefficient of Determination (r²)
- Outlier
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