The correlation between the number of years an employee has worked for a company and the salary of the employee is 0.75.
What can be said about employee salary and years worked?
A) There is no relationship between salary and years worked.
B) Individuals that have worked for the company the longest have higher salaries.
C) Individuals that have worked for the company the longest have lower salaries.
D) The majority of employees have been with the company a long time.
E) The majority of employees have been with the company a short period of time.

Question

The correlation between the number of years an employee has worked for a company and the salary of the employee is 0.75. 
What can be said about employee salary and years worked?
A) There is no relationship between salary and years worked.
B) Individuals that have worked for the company the longest have higher salaries.
C) Individuals that have worked for the company the longest have lower salaries.
D) The majority of employees have been with the company a long time.
E) The majority of employees have been with the company a short period of time.

Quizplus · Accepted Answer

The positive correlation coefficient (0.75) indicates that there is a positive relationship between years worked and salary. This means that as the number of years an employee works for the company increases, their salary tends to increase as well. Therefore, individuals that have worked for the company the longest have higher salaries.

The Correlation Between the Number of Years an Employee Has