Question

A marketing analyst calculates the correlation coefficient between monthly advertising spend and monthly sales revenue across the past two years and gets a value of -0.15. Which conclusion should the analyst report to stakeholders?

Accepted Answer

There is a weak or negligible linear relationship between ad spend and revenue.

Answer

There is a strong negative relationship, so increasing ad spend causes revenue to drop.

Answer

There is a strong positive relationship, so more ad spend reliably increases revenue.

Answer

The two variables are perfectly inversely correlated and one can predict the other exactly.