Questions: A new business, Cooll, sells items to keep you cool when outside. Its products include coolers, generators, floats, and other water accessories designed to beat the heat. Cooll has been spending money on innovative advertising in hopes of increasing its sales revenue. Below is a scatterplot showing advertising expense and sales revenue for the last 36 months. Based on the chart, what type of correlation do advertising expense and sales revenue have?

Solution Steps

The problem involves analyzing a scatterplot that shows the relationship between advertising expenses and sales revenue for a company named CoolIt over the last 36 months. The goal is to determine the type of correlation between advertising expenses and sales revenue.

Examine the scatterplot to identify the pattern of the data points. The x-axis represents advertising expenses, and the y-axis represents sales revenue. Look for trends such as whether the data points form a line, cluster, or have no discernible pattern.

Based on the scatterplot, observe if there is a positive, negative, or no correlation between advertising expenses and sales revenue. A positive correlation means that as advertising expenses increase, sales revenue also increases. A negative correlation means that as advertising expenses increase, sales revenue decreases. No correlation means there is no clear relationship between the two variables.

Final Answer