A linear correlation coefficient is a number calculated from given data that measures the strength of the linear relationship between two variables: x and y. The sign of the linear correlation coefficient indicates the direction of the linear relationship between x and y.
Compute the standardized value of each yi using the formula (zy)i = (yi – ş) / s y . Assemble the product from the last step. Divide the previous step sum by n - 1. where n is the total number of points in the paired data set. All these results have a correlation coefficient of r
. The correlation coefficient formula indicates how close the linear relationship is between two variables. R-squared is the square of the correlation coefficient r (hence the formula r-squared).