Data Were Collected for a Sample of Companies Regarding Their

question 20

Multiple Choice

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 = 0.913. 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) the correlation coefficient of 1.

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Definitions:

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