Data were collected for a sample of companies regarding thei

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) fewer outliers in the data.
B) the same correlation.
C) a weaker correlation.
D) a stronger correlation.
E) None of the above.

Solution

Since the data set are different, we would expect fewer outliers in the data.

So, answer is option A.