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Pearson Correlation Coefficient

Pearson correlation coefficient is used to measure the linear relationship between two continuous variables.

It takes values between -1 and 1. A positive coefficient means a positive linear relationship (i.e., both variables move in the same direction) while a negative coefficient means a negative linear relationship (i.e., the two variables move in opposite directions). Both -1 and 1 refer to perfect linear relationship while 0 refers to no linear relationship.

It assumes the two continuous variables are distributed as Normal.

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