Question

In studying the relationship between average daily sales and time spent calling customers, suppose you computed the correlation coefficient (r). What does a positive value of 'r' indicate?

a) A positive correlation between daily sales and time spent calling
b) A negative correlation between daily sales and time spent calling
c) No correlation between daily sales and time spent calling
d) An inverse relationship between daily sales and time spent calling

Answer 1

A positive value of 'r' indicates a positive correlation between daily sales and time spent calling.

Step-by-step explanation:

A positive value of r means that when x increases, y tends to increase and when x decreases, y tends to decrease (positive correlation). Examples of positive correlation include the relationship between ice cream sales and crime rates increasing during warmer temperatures, the relationship between an individual's height and weight, and the relationship between a person's age and the number of wrinkles.