After calculating the Pearson Correlation Coefficient r unde

After calculating the Pearson Correlation Coefficient r, under what circumstances should you continue and calculate a regression equation? Why?

Solution

Correlation between 2 variables measures the extent of linear relationship between the 2 variables. So using a linear regression equation, where we estimate Y using X, based on a linear relationship between Y and X, it is very important to check if the extent of linearity (measured by Pearson Correlation Coefficient r) is high or low.

If Pearson Correlation Coefficient is close to zero, there is minimal linear relationship between the 2 variables, and there is no point estimating a linear equation for regression. If Pearson Correlation Coefficient is high, there is a strong linear relation between X and Y and regression should be conducted.