DA0-002 Data Analysis Practice Question
A data analyst wants to understand the relationship between advertising spend and sales revenue. The analyst calculates a Pearson correlation coefficient of 0.85. Which of the following is the best interpretation?
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 positive linear relationship between advertising spend and sales.
Pearson r ranges from -1 to +1; 0.85 indicates a strong positive linear relationship, but correlation does not imply causation.
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 a strong positive linear relationship between advertising spend and sales.
Why this is correct
r=0.85 indicates strong positive linear relationship.
- ✗
85% of the variation in sales is explained by advertising spend.
Why it's wrong here
R-squared = 0.7225, not 0.85. Correlation coefficient is not the coefficient of determination.
- ✗
Increasing advertising spend by $1 will increase sales by $0.85.
Why it's wrong here
Correlation does not provide slope; regression would.
- ✗
There is a strong negative linear relationship between advertising spend and sales.
Why it's wrong here
Positive r indicates positive relationship.
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