The product development team at Piggybank is wondering if there is a correlation between retail online sales and total retail sales, so 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.
Here are the total sales numbers
Here are online sales numbers
The objectives (required):
1. Calculate and interpret the correlation between variables.
2. Use effective communication techniques.
3. Give examples of how correlation can be applied to business decisions.
Please see the attached file for complete answers.
"Correlation is a measure of association between two variables. The variables are not designated as dependent or independent.
The value of a correlation coefficient can vary from minus one to plus one. A minus one indicates a perfect negative correlation, while a plus one indicates a perfect positive correlation. A correlation of zero means there is no relationship between the two variables. When there is a negative correlation between two variables, as the value of one variable increases, the value of the other ...
Correlation between total sales numbers and online sales numbers is calculated.