What correlation coefficient is appropriate when one variable is continuous and the other is dichotomous?

The point-biserial correlation coefficient is specifically designed for situations where one variable is continuous and the other is dichotomous (i.e., it has only two possible values). This statistical method enables researchers to measure the strength and direction of the association between these two types of variables effectively.

In this context, the continuous variable represents a spectrum of values, while the dichotomous variable, typically coded as 0 and 1 (or two distinct categories), serves to differentiate the groups within the continuous variable. The point-biserial correlation assesses how changes in the continuous variable are associated with the two groups established by the dichotomous variable.

Choosing the point-biserial correlation is appropriate because it computes a correlation that reflects the unique relationship between a binary variable and a continuous variable, allowing for effective analysis in various research settings involving these types of data. This makes it distinctively suited for the question at hand compared to other correlation types.