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**Correlation** - is a statistical measure to quantify the strength of the relationship between two quantitative and continuous variables. The relationship can be one of the following

Positive - increasing one variable would increase the other

Negative - increasing one variable would decrease the other

No Correlation - increasing one variable has no impact on the other

**R-Squared **is also known as the Coefficient of Determination and is an output from regression analysis. It represents the percentage of response variable variation that is explained by its relationship with one or more predictor variables. In general, the higher the R-squared value, the better the model fits your data. It is always between 0 and 100%.

An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Dipankar Acharya on 4th May 2021.

Applause for all the respondents - Ilavarasi P, Rajender Prasad, Dipankar Acharya

## Question

## Vishwadeep Khatri 268

Q 361.Correlation coefficient is denoted by 'r' and R Squared (coefficient of determination) is the square of 'r'.Why do we need to run a full regression analysis if the simpler correlation coefficient itself tells us about the extent of relationship between two variables?Note for website visitors- Two questions are asked every week on this platform. One on Tuesday and the other on Friday.All questions so far can be seen here - https://www.benchmarksixsigma.com/forum/lean-six-sigma-business-excellence-questions/Please visit the forum home page at https://www.benchmarksixsigma.com/forum/ to respond to the latest question open till the next Tuesday/ Friday evening 5 PM as per Indian Standard Time. Questions launched on Tuesdays are open till Friday and questions launched on Friday are open till Tuesday.The best answer is always shown at the top among responses and the author finds honorable mention in our Business Excellence dictionary at https://www.benchmarksixsigma.com/forum/business-excellence-dictionary-glossary/ along with the related term## Link to post

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