Understand how working with summary values affects results.
-Data were collected for a sample of companies regarding their investment in quality
Improvement efforts and cost savings realized as a result (both measured as a percentage
Of sales revenue). The correlation coefficient for these data is r = .913. If the data were
Collected for individual departments within companies rather than at the company level,
We would expect
A) a stronger correlation.
B) a weaker correlation.
C) the same correlation.
D) fewer outliers in the data.
E) None of the above.

Question

Quizplus · Accepted Answer

When data is aggregated at a higher level (e.g., company level), the correlation can appear stronger due to reduced variability. Collecting data at a more granular level (e.g., department level) often introduces more variability, which can weaken the correlation.

Understand How Working with Summary Values Affects Results