1. ## Correlation Question help?

A company keeps records of its new salespeople on the number of months on the job and the monthly sales generated.
A random sample of 7 new salespeople was chosen and their data is given in the table below.

x(months on the job) 4 , 2 , 12 , 1 , 5 , 9 , 8
y(sales generated in July 2010 , in thousand dollars) 7.0 , k , 15.2 , 1.0 , 3.5 , 12.1 , 10.9

Question:

The company wants to know if there is a strong linear corrrelation between y and x by just calculating the correlation coefficient.

Im not sure on how i should answer this question. I kind of think its somehow related to how correlation does not imply cause.
Am i right? If not, how should i answer this question?

thank you very much!

2. ## Re: Correlation Question help?

you are right that correlation does not imply cause, but the company is not investigating "cause". They are only interested in linear correlation.

So the issue iswhether you can use your sample to determine if there is a "strong" correlation or not. Consider if the sample is large enough to do this.

3. ## Re: Correlation Question help?

Oh! I see. Okay, i tried plotting a scatter diagram using my graphing calculator and i got a fairly straight line. (I had k be 0 for this)
Am i heading in the right direction? Thanks for the help!

4. ## Re: Correlation Question help?

it looks straight to me as well. whether this is an appropriate answer depends on your level of study.....in advanced courses you may be expected to do some kind of quantitative test.