A study was designed to examine the relationship between the TIME (in days) to complete a construction project. Data were collected on 15 projects and included the following independent variables: SIZE of the contract ($1,000s); BAD DAYS, number of bad weather days; STRIKE, a dummy variable whether or not there was a strike 1= strike, 0 = no strike; SUBCONTRACT, the number of sub-contractors involved. The correlation matrix is given below.
Time Size Bad Days Strike Subcontract
Time 1.000
Size .450 1.000
Bad Days .695 .566 1.000
Strike .877 .538 .666 1.000
Subcontract .844 .662 .728 .814 1.000
Based on the correlation between STRIKE and SUBCONTRACT, we can say the following
The more subcontractors the less likely to have a strike
None of these
Subcontractors are not related to a strike
The more subcontractors the more likely to have a strike