If a scatterplot shows that an increase in the number of customers corresponds with a decrease in wait time, what is the direction of the correlation coefficient?

The correlation coefficient quantifies the direction and strength of a relationship between two variables. In this scenario, as the number of customers increases, the wait time decreases. This indicates an inverse relationship between the two variables, meaning that one variable rises while the other falls.

When the correlation coefficient is negative, it signifies that as one variable increases, the other variable decreases. Therefore, in this case, a correlation coefficient that reflects a decline in wait time with an increase in the number of customers is indeed negative.

Understanding this correlation helps businesses make informed decisions for improving customer service. A negative correlation can signal that as demand (number of customers) grows, wait times may improve, suggesting effective service operations.