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 correlation between online retail sales and total sales based on the data ('04Q2) is very high ~ 0.81. This means that online retail sales and total retail sales are high related to each other. However, this does not imply any causal relationship between online and total sales. This only means that the two are related and one cannot infer if online leads to total sales or vice ...
This posting contains a report on correlation between retail online sales and total retail sales