Or they may find that specific advertising campaigns result in a correlated decrease of customer engagement, in turn suggesting the need for a reevaluation of current efforts. For example, companies may find that as spending on social media marketing increases, so does customer engagement, indicating that more spending might make sense. Correlation analysis may also return results anywhere between -1 and +1, which indicates that variables change at similar but not identical rates.Ĭorrelation values can help businesses evaluate the impact of specific actions on other actions. A correlation value of -1, meanwhile, is a “perfect negative correlation”, which means that as variable X increases, variable Y decreases at the same rate. A correlation coefficient of 0 means that variables have no impact on one another - increases or decreases in one variable have no consistent effect on the other.Ī correlation coefficient of +1 indicates a “perfect positive correlation”, which means that as variable X increases, variable Y increases at the same rate. Correlation measures the relationship between two variables.
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