Consumer Behavior Research Methods

Descriptive Statistics

Bivariate statistical analysis – Correlation indexes | Linear correlation coefficient

To assess the strength of a linear relationship between two variables, we use correlations r
 
Linear correlation coefficient r

It is a relative index that solves the problem of the covariance and it can have 
values between -1 and 1:

  • r(x,y) = 1 --> y is a linear function of x and the observation are on a straight line with positive slope

  • r(x,y) = -1 --> y is a linear function of x and the observation are on a straight line with negative slope

  • r(x,y) = 0 --> the is no linear relation between the variables x and y

Diskussion