Math Problem Statement

please calculate the correlation coefficient of this data

Please calculate the correlation coefficient of this data.

Solution

The correlation coefficient between the company's online ad spend and sales revenue is approximately 0.9950.995. This indicates a very strong positive linear relationship between the two variables.

Would you like further details or have any questions?

Here are some related questions:

  1. What is the significance of a correlation coefficient close to 1?
  2. Can we predict future sales revenue based on this data?
  3. How would a correlation coefficient of 0 or -1 affect the relationship?
  4. What other factors could influence sales revenue besides ad spend?
  5. How can we calculate a regression equation using this data?

Tip: A high correlation does not always imply causation; further analysis is often necessary to determine the nature of the relationship.

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Math Problem Analysis

Mathematical Concepts

Statistics
Correlation

Formulas

Pearson correlation coefficient formula

Theorems

Pearson's Correlation Theorem

Suitable Grade Level

Undergraduate