Microsoft Excel Statistical and Advanced Functions for Decision Making

There are four aspects to managerial decision making. These are as follows i.e. Risk, Uncertainty, Conflict, and Lack of Structure

should bear in mind that just because two variables are strongly correlated does not imply that there is a relationship between them. The following example highlights this.

The following categories indicate a quick way of ding so.If the r value is:
0.0 to 0.2 : Very weak to negligible correlation
0.2 to 0.4 : Low correlation (not very significant)
0.4 to 0.7 : Moderate correlation
0.7 to 0.9 : High correlation
0.9 to 1.0 : Very high correlation

How do you calculate the correlation coefficient r value? The standard measure of correlation is called the product moment correlation coefficient.

a start, one way of describing a relationship is using the correlation technique. Correlation is simply a technique used to discover if a relationship exists between any two variables selected. In other words, the correlation between two variables is the degree to there is a “linear relationship” between them.

Why do people often ignore measurement? It is so due to some of the following reasons:
Uncertain about what or how to measure.
Measurement requires time and effort.
The attitude of "I already know all I need to know about this process".
Fear of discovering new problems or failure.
Measurements can indicate poor performance.

Some of the other benefits of measurement include:
Ensure customers are receiving a consistent level of service.
Allow concrete feedback to a work group.
Establish basis for celebration and reward.
Provide a method for assessing progress.
Reduce operational costs by eliminating the cost of error correction.

same principle applies to any organizational processes. Measurement separates fact from speculation, indicating whether the process is under control, improving, or worsening. They indicate strengths and highlight areas where improvement is needed. Measurement helps management plan improvements and is the most reliable basis for day-to-day management decisions

Furthermore, you can correlate the pneumonia cases with the sales of pesticides as completely unrelated factors have caused both the variables to increase in the three month period.

Someone recording this data may compile the data and say that since the rainfall is insignificant, it can be ignored. However, this is not the case. The few days that rains within a year can fill up the dams and water catchment areas.