Question

The Sensor Dynamics Corporation did a scientific study on the impact of absenteeism on increased costs. It determined that there's a statistical correlation of 0.7. What does that indicate for the organization?
a. Absenteeism increases costs, but only to a minor degree.
b. There is no relationship between absenteeism and costs.
c. Costs are reduced due to absenteeism's labor savings.
d. Absenteeism significantly increases costs.

Answer 1

Answer:

d. Absenteeism significantly increases costs.

Explanation:

Correlation shows how a change in the value of one variable cause a change in the value of another variable either in the same direction or opposite direction. correlation coefficient is the numerical value of the degree of correlation. the Correlation coefficients  can either be -1, 1,or 0

1.0 means a perfect positive correlation and when r = -1.0 indicates a perfect negative correlation. where correlation, is zero (0), it means there is no relationship between the variables being tested.

Since correlation in this question is 0.7 which is tending towards +1, it means there is a strong or significant correlation between absenteeism and increased costs