Most importantly, please explain the implications and restrictions of this correlation coefficient using language a non-business person would understand. Please keep this to a few sentences and type this directly under the data on the spreadsheet (or on a new tab if you prefer). The idea here is to hone your analysis skills and to prepare you to explain your findings at work to others.
Conduct a Pearson correlation for (1) switching costs and (2) retention. Recall that a correlation (r) measures the extent to which two variables are associated with each other. The value of r always falls between -1 and 1. A positive correlation would indicate that higher switching costs are associated with longer customer retention, whereas a negative correlation would indicate the opposite. A correlation of r > 0.75 would be considered large. What is r? Does it indicate that higher switching costs are associated with customers' duration with the firm?
r = 0.863700416
