The Smithfield Organic Milk Company recently studied a rando

The Smithfield Organic Milk Company recently studied a random sample of 30 of its distributors and found the correlation between sales and advertising dollars to be 0.67. Is there a significant linear relationship between sales and advertising? If so, is it fair to conclude that advertising causes sales to increase?

Solution

Yes, there is a strong linear relationship between sales and advertising as the correlation value indicates. So, it can be concluded that advertising causes sales to increase as there is strong psitive correlation.