Bill is doing a project for you in the marketing department. Ln conducting his analysis regarding consumer behavior and a new product that has come out, he tells you the correlation between these two variables is 1.09. What is your response to this analysis.

Question

Judy conducted an analysis for her supervisor. The result she obtained was a correlation coefficient that was negative 0.86. Judy us confused by the number and feels that because it is negative and not positive, it means that it is bad. You are her supervisor. How would you clarify this result for Judy regarding the meaning of the correlation?

Answer 1

A) correlation coefficient is between -1 and +1 , not 1.09

B) negative coefficient means that y is pretty well correlated with negative x. It is pretty much a straight line but with negative slope. like y = -5x + 3

http://www.dmstat1.com/res/TheCorrelationCoefficientDefined.html

Answer 2

Judy has conducted an analysis for her supervisor. The result she obtained was a correlation coefficient that was negative 0.86. Judy is confused by this number and feels that because it is negative and not positive is means that it is bad. You are her supervisor. How would you clarify this result for Judy regarding the meaning of the correlation?