Dictionary » Letter C » coefficient of correlation
In regression analysis this is a statistic designated as r and ranging from -1 to +1. It indicates the percentage of correlation between the dependent variable and the independent variable(s). When this statistic is squared it produces the coefficient of determination, which indicates the percentage change in the dependent variable that is explained by the change in the independent variable(s). Correlation does not necessarily mean there is a cause-and-effect relationship.
| » For more clarity on this term: |
← Go Back |
Take our accounting exams online (1,660 questions) when you join AccountingCoach Pro. |
![]() |
Receive our popular 15-page Cheat Sheet at no cost when
you join our free newsletter: