What statistical measure would Walmart use to describe the relationship between the number of employees and their years with the company?

Study for the Gramling Business Analytics Exam. Engage with multiple choice questions and detailed explanations. Master your business analytics skills and get ready for success!

The correlation coefficient, represented as "r," is a statistical measure that quantifies the degree to which two variables are related. In the context of Walmart wanting to understand the relationship between the number of employees and their years with the company, the correlation coefficient is an appropriate choice because it indicates how changes in one variable are associated with changes in another.

If Walmart observes that as the number of employees increases, the average years of tenure also tends to increase or decrease, the correlation coefficient will provide a value that reflects the strength and direction (positive or negative) of this relationship. A positive correlation would suggest that more employees tend to have more years with the company, while a negative correlation would indicate the opposite.

The other statistical measures, such as the mean, median, and standard deviation, serve different purposes. The mean provides an average of a single variable, the median gives the middle value of a dataset, and the standard deviation measures the dispersion or spread of data points from the mean. However, none of these measures would effectively convey the nature of the relationship between the two variables in question, making the correlation coefficient the most suitable choice for analyzing the relationship between the number of employees and their years with the company.

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