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Jaquard’s coefficient


Suppose one of the variables is “owns yacht” (yes/no).  If both records have a “1,” indicating they both own a yacht, this is a strong similarity.  However, if both have a “0,” this does not tell us much, since nearly everyone is a “0.”

Jaquard?s coefficient is


Where d is the number of 1/1 agreements, and b and c are the 1/0 and 0/1 disagreements.  Thus, it is the number of meaningful agreements divided by the meaningful agreements+ disagreements.