DQ2 Week 3 Please respond to this discussion question by Saturday Day 5 What is the purpose of using correlation analysis How might correlation analysis be used in business decisions or in strategy formulation and implementation How might correlation analysis be misused to explain a cause and effect relationship The correlation analysis is a way to measure how related or associated two variables are to one another This type of analysis would focus on strategies or decisions that already exist and determines if and in what way those things are related to each other The purpose of doing correlations to give us a basis to predict what will happen with with a variable such as a sales projection in a certain region based on what the company knows about another varialbe such as actual sales of similar products in that same region A correlation analysis will not always work and can be misused to explain a cause and effect relationship when the users does not have a firm understanding of different of an industry for instance in most cases there is a correlation between education and income where the more education a person has results in earnign a higher income but in some industry such as trades this would not be historically true There are many people that work as carpenters mechanics if the education income correlation analysis was made using this data would not result in accurate assumptions Allbusiness 2012 Retrieved from http www allbusiness com glossaries correlation analysis 4964988 1 html
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