STA014 · Probability & statistics · Classes 11–12
Correlation
The correlation coefficient r (from −1 to 1) measures how close the points are to a straight line: near 1 strong positive, near −1 strong negative, near 0 none. Correlation does not mean causation.
rCorrelation
📐 Formula
r = Σ(x − x̄)(y − ȳ) / √(Σ(x − x̄)² Σ(y − ȳ)²)
✏️ Worked example
Trend −1 with small noise: r ≈ −0.95, a strong negative correlation. Increase the noise and r moves towards 0.
🌍 Where it is used
Testing relationships in science, economics and health data.
❓ Quick check
r = 0.02 means…
🏋️ Practice
EasyWhat r means a perfect falling line?
Answer: −1
MediumIce-cream sales and drownings correlate. Does ice-cream cause drowning?
Answer: No: hot weather affects both
ChallengeCan r be 1.5?
Answer: No