SOLUTION: Bill is doing a project for you in the marketing department. In conducting his analysis regarding consumer behavior and a new product that has come out, he tells you the correlat
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Question 616225: Bill is doing a project for you in the marketing department. In conducting his analysis regarding consumer behavior and a new product that has come out, he tells you the correlation between these two variables is 1.09. What is your response to this analysis?
Judy has conducted an analysis for her supervisor. The results she obtained was a correlation coefficient that was negative 0.86. Judy is confused by this number and feels that because it is negative and not positive, is means that it is bad. You are here supervisor. How would you clarify this result for Judy regarding the meaning of the correlation?
In a negative correlation, as the values of one of the variables increase, the values of the second variable decrease. Likewise, as the value of one of the variables decreases, the value of the other variable increases. In more familiar terms, it means that one variable is inversely proportional to the second variable.
