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CORRELATIONAL RESEARCH.

Reviews elements of research. Defining the research approach; measure of association between two variables. Identifying an organizational situation amenable to study through correlational research. Establishing a causal relationship. Managerial questions appropriate for investigation. Describing data collection methods appropriate for correlational research.

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CORRELATIONAL RESEARCH
Introduction
This paper reviews correlational research. The points of focus in the review are (1) defining of the research approach, (2) identifying an organizational situation amendable to study through correlational research, (3) stating managerial questions appropriate for investigation through correlational research, and (4) describing data collection methods that are appropriate for correlational research.
Defining Correlational Research
Correlation quite literally is a measure of association between two variables. Correlational research more specifically refers to a measure of linear association between two variables. The range of the linear relationship between the variables, represented by a coef

Defining Correlational Research Correlation quite literally is a measure of association between twovariables. Chicago: Richard D. Cooper and Schindler (1997) state that a controversy exists as to thecapability of correlational analysis to establish a causal relationship.The widely accepted position in scientific and mathematics is thatcorrelational analysis provides and excellent measure of the magnitude anddirection of the relationship that exists between variables, but thatcorrelation analysis cannot establish a causal relationship between thevariables (Carter, 2 ; Neter, Kutner, Nachtsheim, & Wasserman, 1996;Bowalekar, 1993). Statistics in medical research - III.Correlation and regression analysis. Journal of Postgraduate Medicine, 39,235-243. The points of focus in thereview are (1) defining of the research approach, (2) identifying anorganizational situation amendable to study through correlational research,(3) stating managerial questions appropriate for investigation throughcorrelational research, and (4) describing data collection methods that areappropriate for correlational research. A plus sign indicates the presence of apositive relationship wherein the values of the two variables move in thesame direction when they change. K. As a general rule, a correlationcoefficient > .7 is necessary to establish a reliable relationship betweentwo variables (Carter, 2 ; Neter, Kutner, Nachtsheim, & Wasserman, 1996;Bowalekar, 1993). (1993). Thus, businessresearchers should adhere to the widely accepted position thatcorrelational research measures the strength of relationships betweenvariables but does not establish a causal link between the two variables. To examine this situation, an organization would collect data relevantto (1) the rate of inflation for specified periods over time and (2) thelevel of retail sales for the same specified periods over time. Rather, all thatmanagement need to assess the relationship is to determine (1) that ameasurable correlation exists between the two variables, (2) establish thedirectional characteristic of the relationship between the rate ofinflation and retain sales, and (3) measure the magnitude of therelationship between the two variables. Correlational research more specifically refers to a measure oflinear association between two variables. In such an analysis, there is no needfor organizational management to establish a causal relationship betweenthe rate of inflation and the level of retail sales. Therefore, a decrease in the rate of inflation, otherrelevant factors remaining unchanged, leads to an increase in demand forretail goods and, in turn, an increase in the level of retail sales. (3rd ed.). Identifying an Organizational Situation An organizational situation that would be amendable to analysisthrough the application of correlational research is the projection of theprobable impact on the level of retail sales of change in the rate ofinflation in the general economy. References Bowalekar, S. Neter, J., Kutner, M. A minus sign indicates a negativerelationship wherein the values of the two variables move in divergentdirections when they change. Irwin,Inc. Correlational research is a powerful tool for researchers.Correlation analysis with a single number, the Pearson product momentcorrelation coefficient, defines both the magnitude and the direction of arelationship between two variables. Dueling statistics. Describing Data Collection Methods For correlation analysis, the measurement of the variables analyzedmust be interval in character. Stating a Managerial Question Based on the situation described in the preceding discussion, themanagerial question for which correlational research could develop ananswer could be as follows: Considering that the Bureau of Economic Research is predictingthat the rate of inflation will increase from three-percent (annual basis)to seven-percent (annual basis) over the coming six months, to how muchshould the company reduce inventory levels because of anticipatedreductions in the level of retain sales. Thecorrelation coefficient result from the application of correlation analysisto the data collected would allow organizational management to predictchanges in the level of retail sales based projections for changes in therate of inflation. (1996).Applied linear regression models. The correlational research will determine the relationship between therate of inflation and the level of retail sales. Almost all correlationcoefficients, however, fall between the extremes of magnitude. Thus, measures at any point onthe scale are comparable to measures at any other point on the scale. correlationcoefficient indicates a perfect correlation between the two variables,e.g., any given change in the value of one variable reflects the exactmagnitude of change in the other variable. correlational research Introduction This paper reviews correlational research. Therefore, the collection of data mustprovide values on a scale wherein the differences between the variouspoints on the scale are the same interval. H., Nachtsheim, C. (2 , Winter). Carter, G. The range of the linearrelationship between the variables, represented by a coefficient, is from-1 to +1. Forum for AppliedResearch and Public Policy, 15(4), 68-78. The sign of the measure indicates the direction of thecorrelational relationship. A zero correlation coefficient indicates a complete absence of anycorrelational relationship between the variables. J., & Wasserman, W. Themagnitude of the correlation coefficient indicates the strength of therelationship between the two variables, regardless of the direction of therelationship. A 1. Toaccept the position of Cooper and Schindler (1997) would place business-oriented statistical analysis outside the boundaries of the acceptedscientific and mathematical position on the issue. The projected change inthe level of retail sales, in turn, will permit organizational managementto determine how much to reduce inventory levels to support reducedexpectations for the level of retail sales. Cooper and Schindler (1997) provide a long discussion oncausal analysis that really does not address the mathematical issues. With respect to the relationship between the rate of inflation and thelevel of retail sales, the underlying assumptions for the relationship areas follows: > An increase in the rate of inflation causes retail goods to be more difficult to purchase, all other relevant factors remaining unchanged, because > An increase in the rate of inflation causes the purchasing power of wages to decrease, all other relevant factors remaining equal, and > A decrease in the purchasing power of wages leads to a reduction in the level of retail sales The assumption is that a decrease in the rate of inflation has theopposite effects.

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