If sales go up when the advertising budget goes up, they correlate. The correlation coefficient is a measure of how closely the two data sets correlate. A correlation coefficient of 1 is a perfect correlation, .9 is a strong correlation, and .2 is a weak correlation. This value can also be negative, as when the incidence of a disease goes down when vaccinations go up. A correlation coefficient of -1 is a perfect negative correlation. Always remember, though, that correlation does not imply causation.

Recent Posts
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt