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A gain-probability way to interpret correlation coefficients: A tutorial
1Department of Psychology, New Mexico State University.
Abstract:
The interpretation of correlation coefficients has invoked considerable discussion over many decades. One interpretive procedure is to use the coefficient of determination-the squared correlation coefficient-to index variance accounted for in one variable by variance in the other variable. A second interpretive procedure is to construct binomial effect size displays that involve dichotomizing continuous dependent variables. The present goal is to present a third interpretive procedure, with tutorial, to estimate probabilistic (dis)advantages implied by correlation coefficients and construct gain-probability diagrams. The proposed procedure does not involve dichotomizing continuous dependent variables, thereby losing information. In addition, the proposed procedure extends well to comparing correlation coefficients and facilitates subtle and nuanced implications that can enhance theoretical specificity. (PsycInfo Database Record (c) 2026 APA, all rights reserved).
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