ACCA · Question 08 · Data Analysis and Statistical Techniques
A tech company calculates the correlation coefficient (r) between its monthly marketing spend and its monthly software subscriptions to be +0.85.
Which of the following statements is the most accurate interpretation of this result?
Answer options:
Marketing spend causes 85% of the increase in software subscriptions.
There is a strong positive linear relationship between marketing spend and software subscriptions.
72.25% of software subscriptions are generated by marketing spend.
There is a weak positive linear relationship between the two variables.
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