A correlation coefficient indicates what?

A correlation coefficient quantifies the degree to which two sets of data are related. This statistical measure, typically ranging from -1 to +1, illustrates how changes in one variable may correspond to changes in another. A coefficient close to +1 indicates a strong positive relationship, where increases in one variable are associated with increases in the other. Conversely, a coefficient close to -1 suggests a strong negative relationship, where increases in one variable correspond to decreases in the other. A coefficient around 0 indicates no relationship.

Understanding the relationship between data sets through correlation is essential in various fields, including psychology, education, and economics, as it aids in predicting trends and making informed decisions. Exploring other options, while they each describe significant concepts within testing and measurement, they do not pertain directly to the function of a correlation coefficient as established in statistical analysis.