A selected data from April 23, 1990 edition of Fortune magazine for 94 companies had the following information Type of industry (distribution provided to the right)Sales ($M) Profit ($M); #emp: number of employees ;Profits/emp ; Assets ($M); Sales/emp; Stockholders Eq($M): stockholders equity

Analyze and interpret these correlations. ''Profits'' is the dependent variable

Correlations Sales($M) Profit($M) #emp Profits/emp Assets($Mil.) Sales/emp Stockholder's Eq($Mil.) Sales($M) Profit($M) 1.0000 0.8395 0.8395 1.0000 0.6147 0.5681 0.1890 0.5035 0.9705 0.8373 0.2855 0.2418 0.9278 0.8440 #emp Profits/emp Assets($Mil.) Sales/emp Stockholder's Eq($Mil.) 0.6147 0.1890 0.9705 0.2855 0.9278 0.5681 0.5035 0.8373 0.2418 0.8440 1.0000 -0.1298 0.6302 -0.2027 0.6485 -0.1298 1.0000 0.1905 0.5559 0.1948 0.6302 0.1905 1.0000 0.2501 0.9731 -0.2027 0.5559 0.2501 1.0000 0.2108 0.6485 0.1948 0.9731 0.2108 1.0000 There are 3 missing values. The correlations are estimated by REML method. Scatterplot Matrix 60000 Sales($M) 30000 0 Profit($M) 3000 2000 1000 0 -1000 250000 #emp 100000 -50000 Profits/emp 80000 60000 40000 20000 0 Assets($Mil. 1200 Sales/emp 600 0 25000 tockholder Eq($Mil.) 10000 -5000 0 60000 0 2000 100000 -20 20 60 0 40000 0 600 10000 Correlations Sales($M) Profit($M) #emp Profits/emp Assets($Mil.) Sales/emp Stockholder's Eq($Mil.) Sales($M) Profit($M) 1.0000 0.8395 0.8395 1.0000 0.6147 0.5681 0.1890 0.5035 0.9705 0.8373 0.2855 0.2418 0.9278 0.8440 #emp Profits/emp Assets($Mil.) Sales/emp Stockholder's Eq($Mil.) 0.6147 0.1890 0.9705 0.2855 0.9278 0.5681 0.5035 0.8373 0.2418 0.8440 1.0000 -0.1298 0.6302 -0.2027 0.6485 -0.1298 1.0000 0.1905 0.5559 0.1948 0.6302 0.1905 1.0000 0.2501 0.9731 -0.2027 0.5559 0.2501 1.0000 0.2108 0.6485 0.1948 0.9731 0.2108 1.0000 There are 3 missing values. The correlations are estimated by REML method. Scatterplot Matrix 60000 Sales($M) 30000 0 Profit($M) 3000 2000 1000 0 -1000 250000 #emp 100000 -50000 Profits/emp 80000 60000 40000 20000 0 Assets($Mil. 1200 Sales/emp 600 0 25000 tockholder Eq($Mil.) 10000 -5000 0 60000 0 2000 100000 -20 20 60 0 40000 0 600 10000