Determining the strength of given data using correlation

Reference no: EM1319871

Carpet City wants to develop a means to forecast its carpet sales. The store manager believes to the store's sales are directly related to the number of new housing starts in town. The manager gathered data from county records on monthly house construction permits and from store record on monthly sales. These data are as follows:

Monthly Carpet	Monthly Construction
Sales (1,000 yd.)	Permits
5	21
10	35
4	10
3	12
8	16
2	9
12	41
11	15
9	18
14	26

Determine the strength of the causal relationship between monthly sales and new home construction by using correlation.

Reference no: EM1319871

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