Walmart noticed that as the number of employees increased, sales also increased. What type of relationship does this indicate?

Enhance your skills for the Gramling Business Analytics Exam. Prepare with flashcards and multiple-choice questions, each offering hints and explanations. Gear up for your exam!

The situation described indicates a positive relationship between the number of employees and sales. This means that as one variable (the number of employees) increases, the other variable (sales) also tends to increase. In many business contexts, a greater number of employees can lead to enhanced customer service, increased store hours, and more operational capabilities, all of which can contribute to higher sales figures.

A positive relationship is characterized by this direct correlation, where both variables move in the same direction. Graphically, this would often be represented by an upward-sloping line on a scatter plot. Understanding this relationship can be vital for businesses like Walmart, as it can inform decisions about staffing levels in response to sales performance and vice versa.

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