A CEO announces at the annual shareholders meeting that the new see-through packaging for the company's flagship product has been a success. In fact, he says, "There is a strong correlation between packaging and sales." Criticize this statement on statistical grounds.

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Part 1

Choose the correct answer below.

A.

Both variables are quantitative but the relationship between packaging and sales may not be linear.

B.

"Packaging" is not a variable. At best, it is a category. There is no basis for computing a correlation.

C.

Both variables are quantitative but the relationship between packaging and sales may have outliers.

D.

"Sales" is not a variable. At best, it is a category. There is no basis for computing a correlation.