Basically, a link from another website pointing to yours would count as a vote for that website, having many incoming links to your website would show that it is popular and would positively increase your search engine ranking. PR is a score out of 10 but it is no longer determined in such a simple manner. There are now thousands of factors that we aren't told about that affects the SERP. For example, having incoming links from relevant sites is a plus compared to links coming in from spam sites which would give a negative impact on rankings
Read more »The Basics of Search Engine Optimisation on the Web
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