The Sensor Dynamics Corporation did a scientific study on the impact of absenteeism on increased costs.
The correlation between the two was found to be 0.7
Correlation:
It is a measure of linear relationship between two quantities.
A positive correlation means that an increase in one quantity leads to an increase in another quantity
A negative correlation means with increase in one quantity the other quantity decreases.
Values between 0 and 0.3 tells about a weak positive linear relationship, values between 0.3 and 0.7 shows a moderate positive correlation and a correlation of 0.7 and 1.0 states a strong positive linear relationship.
Thus, we can say that there is a high positive correlation between absenteeism and cost.
