Determining the strength of given data using correlation.
Carpet City wants to develop a means to forecast its carpet sales. The store manager believes to store's sales are directly related to the number of new housing starts in town. The manager gathered data from county records on monthly house construction permits and from store record on monthly sales. These data are as follows:
|
Monthly Carpet
|
Monthly Construction
|
|
Sales (1,000 yd.)
|
Permits
|
|
5
|
21
|
|
10
|
35
|
|
4
|
10
|
|
3
|
12
|
|
8
|
16
|
|
2
|
9
|
|
12
|
41
|
|
11
|
15
|
|
9
|
18
|
|
14
|
26
|
Conclude the strength of the causal relationship between monthly sales and new home construction by using correlation.