A manager finds a moderate negative correlation between the number of computer sales and the number of microwave sales in his store.

Which statement is true?

The correlation is most likely a coincidence.

The correlation is most likely due to a lurking variable.

The correlation is most likely a causation.

Question

01-06-2022
Mathematics

Answered

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A manager finds a moderate negative correlation between the number of computer sales and the number of microwave sales in his store.

Which statement is true?

The correlation is most likely a coincidence.

The correlation is most likely due to a lurking variable.

The correlation is most likely a causation.

Sagot :

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ewomazinoade ewomazinoade · Answer 1 · 2022-06-03T07:11:16-04:00

The true statement is the correlation is most likely due to a lurking variable.

What is negative correlation?

Correlation is a statistical measure used to measure the relationship that exists between two variables. Negative correlation is when there is an inverse relationship between the two variables. If one variable increases, the other variable decreases.

Assume that the store is located near a school where the students live on an allowance. So, students do not have time to buy both computers and microwaves. When students buy computers they do not have enough money to buy microwaves. This explains the negative correlation.

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Sagot :

What is negative correlation?

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