Point-biserial correlation measures the relationship between one truly binary variable and one continuous variable. The binary variable must be naturally dichotomous, coded as 0 and 1, while the other variable can be any continuous numeric outcome such as test score, income, recovery score, or productivity. A point-biserial correlation is ideal when the research question is really about how strongly group membership predicts or tracks a continuous result.
Mathematically, point-biserial correlation is not a different family of statistic from Pearson correlation. It is simply Pearson r applied to the special case where one variable is binary. That means if X is coded 0 and 1, Pearson r and rpb are the same number. The interpretation is then immediate: positive values mean the group coded 1 tends to have higher Y values, negative values mean the group coded 1 tends to have lower Y values, and larger absolute values indicate stronger group separation.
Typical examples include item analysis in education, where correct or incorrect on a question is compared to total score, often as an item discrimination index; medical studies, where treatment or control is compared to a biomarker or recovery index; marketing, where purchase or non-purchase is compared to income; and HR analytics, where certification status is compared to performance score. One important distinction is that point-biserial correlation is for naturally dichotomous variables. If the binary variable is artificially dichotomous because a continuous variable was cut into high versus low groups, the biserial correlation is conceptually more appropriate.