Successful firms require workers to have mastered the required skill set in their profession. One of these skills in the field of quantitative analysis is the workers’ ability to analyze statistical data. One of the main ways of analyzing quantitative data is through correlation research. Correlation research is a kind of quantitative analysis method that aims to establish any relationships or links between any two or more variables. By relationship, it means the status of one variable is directly or indirectly reflected in the status of the other variable.
A correlation research example at a work place could be a research to establish the relationship between sales levels and prices of the goods produced by the company. The researcher will use the information on the prices of the company’s products to find out if it is in any way related to the sales levels. The hypothesis could be that lower product prices increase sales. The researcher will need full records from the firm about both variables. The information collected will be information spread over a long period of time where the price levels have been fluctuating. After data collection, the researcher will analyze the data. This can be done by presenting the collected data on an excel spreadsheet, by plotting graphs or by drawing any comparative and statistical figures as per the information on the two variables. After the research, the researcher will have to present a research report on the findings. The researcher could have found out that with the higher the prices, the lower the sales level. The findings in the report will be that there is an inverse relationship between price levels and sales levels.
The correlation results from this survey will be very important in the company’s planning. Correlation results will be used by management to understand the conditions, events and behaviors between the price level and sales. This will equip the management with the adequate knowledge of what to do in case there are any changes in prices so as to maintain or increase the sales of the firm. The correlation survey results will also help the management to make some predictions about the future conditions in the market. The negative relationship between prices and sales means that the firm should aim at keeping the price levels at an optimal level. Optimal prices means a price level that is favorable to the consumers of the firm’s products and at the same time be high enough for the firm to generate high revenue and make profits. The prediction of the market conditions by the management could be by studying the sales trends in relation to the price levels over the last couple of years. The managers can then establish if the price levels have been on the decline and sales increasing. The trend will be used to predict how the market environment will be. These predictions help the management to decide on strategies to implement to make the firm successful.
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