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Coefficient of Determination vs. Correlation

Coefficient of Determination vs. Correlation

Q This section introduces the coefficient of determination R2, which is often confused with the correlation coefficient, r. Discuss how these two values differ and why each is important to know when working with linear regression models.

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• r is measures whether the linear relationship is negative or positive and measures how much the points correspond to a line. r is measured from -1 to 1. r = -1 means that the points from a perfect negative linear relationship and r = 1 means that the points form a perfect positive linear relationship. r = 0 means that the points do not form any linear relationship whatsoever.