Explore BrainMass

Explore BrainMass

    Product Development Correlation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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. Share examples and insights.

    Give two examples of correlation which are evaluated in a business environment and discuss the decision made by evaluating the correlation. From 4th quarter 1999 - To 4th quarter 2003 calculate correlation coefficients with Excel

    © BrainMass Inc. brainmass.com March 4, 2021, 6:07 pm ad1c9bdddf
    https://brainmass.com/statistics/correlation/product-development-correlation-30371

    Attachments

    Solution Preview

    The correlation coefficient is a measure that determines the degree to which two variable's movements are associated. It is calculated as:
    correlation coefficient = Covariance (X, Y) / [SD (Y) * SD (X)]

    correlation between retail online sales and total retail sales.
    Please refer to EXCEL for calculation.
    Note:
    Let Y = Total Retail sales, X = Online sales.
    Ym = Average of Y
    Xm = Average of X
    Variance(Y) = Average of [(Y-Ym)^2]
    Where "^2" means to the power of 2, or ...

    Solution Summary

    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. Share examples and insights.

    Give two examples of correlation which are evaluated in a business environment and discuss the decision made by evaluating the correlation. From 4th quarter 1999 - To 4th quarter 2003 calculate correlation coefficients with Excel

    $2.49

    ADVERTISEMENT