Question

Determine the type of correlation that exists in the given data set.

# of Sales
16
18
15
19
21
39
28
23
35
22
26
37
Profit
330
335
320
350
335
351
325
341
352
352
344
360
A.
According to this data, there is a positive correlation between number of sales and profit.
B.
According to this data, there is a negative correlation between number of sales and profit.
C.
According to this data, there is no correlation between number of sales and profit.
D.
There is not enough information in this data to determine what type of correlation exists between number of sales and profit.

Answer 1

A. According to this data, there is a positive correlation between number of sales and profit.

(Computed Pearson r ≈ 0.64, indicating a moderate positive relationship — as sales increase, profit tends to increase.)