Correlation Analysis Real world example
In which scenario would we opt for co-relation analysis? How would establishing a relation between variables help businesses implement real change? Do you have any real-world examples?
Good to hear from you and thanks for your question.
If a business owner knows that a certain factor is positively correlated to the amount of revenue they have, then this would be a very valuable information for the business owner. Think of a big company like Coca-Cola. If they find out that whenever they advertise on TV and their sales jump by 20% on the next day, then Coca-Cola might be tempted to advertise more often.