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In: Statistics and Probability

To evaluate whether a relationship exists between the number of times a customer visited a store...

To evaluate whether a relationship exists between the number of times a customer visited a store in the past 6 months and the total amount of money the customer spent, we need to generate a scatter plot and correlation coefficient. True or False

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Expert Solution

Given statement is TRUE

We know that scatter plot is useful for generating linear equation for two variable, where one is independent variable and other is dependent variable. So, scatter plot is useful for the evaluating whether a relationship exists between the number of times a customer visited a store in the past 6 month and the total amount of money the customer spend. We can check the slope in the scatter plot to understand whether the relationship is showing positive development over time or negative development over time.

Correlation coefficient will be useful in determining whether a relationship exists between the number of times a customer visited a store in the past 6 month and the total amount of money the customer spend. Correlation coefficient will help us in knowing whether the relationship is negative or positive and strong or weak, etc.

So, we can use scatter plot and correlation.

orchestra answered 2 years ago
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