Question

Determine the type of correlation that exists in the given data set.

of Sales
16
18
15
19
21
39
28
23
35
22
26
37
Profit
330
335
320
350
335
351
325
341
352
352
344
360
A. According to this data, there is a positive correlation between the number of sales and profit.
B. According to this data, there is a negative correlation between the number of sales and profit.
C. According to this data, there is no correlation between the number of sales and profit.
D. There is not enough information in this data to determine what type of correlation exists between the number of sales and profit.

Answer 1

Based on the provided data, one can observe a tendency for profit to increase with the number of sales, indicating a positive correlation between the two variables.

Step-by-step explanation:

The question provided revolves around identifying the type of correlation present in a given data set relating the number of sales to profit. To determine the type of correlation, one must typically calculate the correlation coefficient or visually inspect a scatter plot of the data. A positive correlation is indicated by an increase in one variable accompanying an increase in another, while a negative correlation shows that as one variable increases, the other decreases. If there is no consistent pattern between the two variables, this would suggest no correlation.

Based on the data set provided, where both the number of sales and associated profit values are given, we can generally observe that as the number of sales increases, the profit also tends to increase. This pattern would suggest that there is a positive correlation between the number of sales and the profit, meaning as one increases, so does the other. Thus, the correct answer in this case would be:

A. According to this data, there is a positive correlation between the number of sales and profit.