Consider the following sample data for the relationship between advertising budget and sales for Product A:

Observation

1

2

3

4

5

6

7

8

9

10

Advertising ($)

90,000

100,000

100,000

110,000

120,000

120,000

130,000

140,000

140,000

150,000

Sales ($)

535,000

626,000

625,000

674,000

712,000

725,000

809,000

832,000

845,000

919,000

**What is the correlation value for the relationship between advertising and sales?**

The correlation value between the advertising budget and sales for Product A is approximately 0.993. This indicates a very strong positive linear relationship between advertising expenditure and sales.

Do you want further details or have any questions?

Here are 5 related questions to expand your understanding:
1. How is the correlation coefficient interpreted in terms of strength and direction?
2. What are some possible reasons for this strong correlation?
3. Could the correlation be affected if we included more data points?
4. How does correlation differ from causation in this context?
5. Can you predict sales for an advertising budget of $160,000 using this data?

**Tip:** A correlation close to +1 indicates a strong positive relationship, but it doesn't imply causality.

What is the correlation value for the relationship between advertising and sales?

Find out the correlation value between the advertising budget and sales for Product A. Based on data with advertising budgets ranging from $90,000 to $150,000 and corresponding sales from $535,000 to $919,000, the Pearson correlation coefficient shows a very strong positive relationship. Ideal for high school students learning about statistics and data analysis.

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