MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Essay

MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Individual Project - Essay Example Thus: This type of relationship between the two variables exists when both of them move in the same direction, i.e. either both of them move upward or downward. If we consider two variables X and Y, they are positively or directly correlated if the have values as given under in two cases and when these values are plotted on a graph, the graph will rise from left to right. This type of relationship exists between the two variables when both of them move in the opposite directions i.e. one variable moves upwards while the other moves downwards. If two variables are negatively correlated then they will have the values as given under and if these values are plotted on a graph, the graph will fall from left to right. Correlation between the two variables is said to be perfectly positive if the coefficient of correlation is calculated as +1 and perfectly negative if the coefficient of correlation is calculated as -1. Forecasting is a critical job for the managers around the world and correlation is a statistical tool that can considerably help the managers at Widge Corp to arrive at decisive conclusions, so far as the marketing of their soft drinks in public schools is concerned. 1. According to the article ‘Closing the Digital Divide: Internet Subsidies in Public Schools by Goolsbee and Guryan, there definitely exists a positive correlation between the two variables ‘Number of school lunch eligible students in the school’ and ‘Amount of federal and state funding for the school for education related programs’ (2003) . Thus it will be positively beneficial for the managers at Widge Corp to focus their marketing activities on the schools where the number of ‘School lunch eligible students’ is