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DA0-002 Data Analysis Practice Question

A data analyst is examining the relationship between advertising spend (in thousands) and sales (in thousands). The Pearson correlation coefficient is computed as r = -0.85. Which of the following interpretations is correct?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

There is a strong negative linear relationship.

Pearson r measures linear correlation: -0.85 indicates a strong negative linear relationship (as one increases, the other decreases). The magnitude |0.85| is close to 1, so strong.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    There is no linear relationship.

    Why it's wrong here

    An r of -0.85 indicates a strong negative linear relationship, not absence of one; only r near zero means no linear relationship. It tempts because the negative sign is sometimes misread as indicating no association, which is the correct interpretation when r equals zero.

  • ✗

    There is a strong positive linear relationship between advertising spend and sales.

    Why it's wrong here

    A coefficient of -0.85 is negative, so the relationship is inverse: sales fall as advertising spend rises. It tempts because 0.85 is a large magnitude, and magnitude alone indicates strength, which is the correct reading when r is positive.

  • ✗

    There is a weak negative linear relationship.

    Why it's wrong here

    An r of -0.85 denotes a strong negative linear relationship, since magnitude (not sign) indicates strength; only values near zero are weak. The option is tempting because the negative sign suggests an inverse association, which some analysts mistakenly equate with weakness rather than direction.

  • ✓

    There is a strong negative linear relationship.

    Why this is correct

    The magnitude of r, 0.85, exceeds the conventional 0.7 threshold for strong association, and the negative sign indicates that as advertising spend rises, sales tend to fall along a linear trend. Direction and strength are therefore both captured by this interpretation.

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