Practice Problems: Correlation Answer

With the growth of internet service providers, a researcher decides to examine whether there is a correlation between cost of internet service per month (rounded to the nearest dollar) and degree of customer satisfaction (on a scale of 1 - 10 with a 1 being not at all satisfied and a 10 being extremely satisfied). The researcher only includes programs with comparable types of services. A sample of the data is provided below.

1. Compute the correlation coefficient. r = .076445809 or .08

2. What does this statistic mean concerning the relationship between amount of money spent per month on internet provider service and level of customer satisfaction? There is pretty much no relationship between amount of money one spends for a internet service provider and the degree of customer satisfaction.

3. What percent of the variability is accounted for by the relationship between the two variables and what does this statistic mean? r² = .0058 Less than one percent of the variability is explained. This highlights the lack of relationship between the two variables.