Data on the number of work days missed and the annual salary increase for a company’s employees show that, in general, employees
who missed more days of work during the year received smaller raises than those who missed fewer days. A detailed analysis shows that the number of days missed explains 60% of the variation in salary increases. What is the correlation between the number of days missed and salary increase?
Correlation describes how strongly pairs of given variablé are related. In this case, a detailed analysis that was carried out shows that the number of days missed by employees explains 60% of the variation in salary increases and also impressed upon this fact that employees who missed more days of work during the year received smaller raises than those who missed fewer days.
From the analysis, we can draw a conclusion that there is a correction between days missed and variation in salary increase and that this type of correction is a negative correlation where an increase in the number of days missed will lead to a decrease in the raises awarded to each employee.
