September 2018
Intermediate to advanced
392 pages
10h 16m
English
Figure 9.7
To get a better idea of how strongly two metrics are correlated, we can take a look at the r2 (pronounced ‘r-squared’). The r2 indicates the extent variation or differences in one metric can be explained by a variation or differences in a second metric. The r2 is expressed as a percentage and can easily be calculated by squaring the correlation coefficient. For example, if the organizational data show that the correlation between customer satisfaction and sales performance is r = 0.5, then the r2 is 0.25, indicating that 25 per cent of the variation in sales (increase or decrease) might be explained ...
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