The product development team at PiggyBank is wondering if there is a correlation between retail online sales and total retail sales. Use the Discussion Board to work with the peer/mentor group to calculate the correlation between online and total retail sales, and interpret the results. If your peers are struggling with the calculations, share examples and insights to help them along. Give two examples of correlation which are evaluated in a business environment and discuss the decision made by evaluating the correlation.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
Go to http://www.census.gov/mrts/www/data/pdf/04Q2.pdf for Retail E-Commerce Sales, Fourth Quarter 2004 for the chart of retail and on-line sales for the past few years.
The more data the better, right? Use this link instead to get more data.
I have taken the data till Q1 2006 and did a correlation for the same. Also, I have provided a one page description of correlation and two examples from real world. I have not included the formulas of correlation as it is done directly in Excel. You may like to add that in the one-page based on your requirements.
Hope you will find this useful.
Correlation Coefficient is a coefficient which shows the extent of relationship between two variables. The coefficient of correlation can be either +ve or -ve. The correlation coefficient provides the direction and strength of relationship between two variables. The ...
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