Correlation Between Variables Understanding Business Forecasts Essay

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Total Length: 663 words ( 2 double-spaced pages)

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Part 1




Variable A: Number of school lunch eligible students in the school



Variable B: Amount of funding received by the school for federal and state education-related programs



Correlation: Positive Correlation



Reason: The higher the number of school lunch eligible students, the higher the rate of subsidy



Variable A: Impact of subsidy received



Variable B: Age of students at school



Correlation: Negative correlation



Reason: The subsidy had a greater degree of response in elementary schools than it did in high schools



Variable A: Number of classrooms connected to the internet



Variable B: Student performance as measured by standardized test scores



Correlation: Minimal correlation



Reason: The study came to the conclusion that "despite the noticeable increase in classroom Internet connections, the authors find very little evidence that the program has any impact on student achievement, as measured by test scores in a variety of subjects" (Golsbee and Gurayan 2005).



Variable A: teachers' comfort level with the internet


Variable B: ability of teachers to use internet effectively with their students



Correlation: Positive correlation



Reason: the study found that the teachers' inability to work with computers explained the reason as to why "greater internet access may not directly result in better prepared students" (Golsbee and Gurayan 2005).

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Part 2




To form the correct conclusions from an analysis of a statistical nature, one must be able to not only understand, but also determine the relationship between various variables. In essence, the relation between two variables could be positive, negative, or minimal. Correlation, in basic terms, seeks to gauge the nature of association between two variables (Sullivan, 2007). The relevance of correlation when inferring the correct results from available data cannot, therefore, be overstated. In basic terms, positive correlation (or direct correlation) exists in instances where an increase in variable A leads to an increase in variable B. Positive correlation can also be said to be present or evident in instances where a decrease in variable A also leads to a decrease in variable B. Positive correlation could be inferred between employee motivation (variable A) and performance at the workplace (variable B). In this case, better….....

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References

Golsbee, A.D. & Gurayan, J. (2005). The Impact of Internet Subsidies in Public Schools. Retrieved from http://faculty.chicagobooth.edu/austan.goolsbee/research/erate.pdf

Sullivan, L.E. (Ed.). (2009). The SAGE Glossary of the Social and Behavioral Sciences. London: SAGE.

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