In data on inventory costs and the number of orders placed in the preceding year, it was found that the value of the correlation coefficient r was close to zero.It can, therefore, be conclusively stated that these two variables are unrelated.

Question

Quizplus · Accepted Answer

A correlation coefficient of zero indicates no linear relationship between the two variables, but it does not necessarily mean they are completely unrelated. There could still be a non-linear relationship, or other factors that affect both variables independently.

In Data on Inventory Costs and the Number of Orders