What is the purpose of using correlation analysis? How might correlation analysis be used in business decisions or in strategy formulation and implementation?
Correlation analysis is an important tool In any type of business. The purpose of using the correlation analysis is for the business to determine the relationship between two variables. When a relationship has been found the correlation analysis would be used to predict the trends and changes that are associated with the variables in question. there needs to be some type of correlation analysis in order to determine the variables with the correlation analysis the business or company is able to see the end results and make healthy decisions based on the information that they have found. By using mathematical equations throughout the business world using the right mathematical equations can allow the business to look at the budgets for the quarter, or year. Correlation analysis can be used in a variety of ways to inform the business of what needs to be done to keep things moving within the business. As long as the correlation analysis is found then there is no stopping the business from succeeding in everything that they do. If the right correlation analysis is not found for the business it could mean a disastrous effect on the business. This could mean more costs than the business is willing to dish out. More research would need to be done to find the right correlation analysis for the business and to make the right decisions for the business.