The Sensor Dynamics Corporation did a scientific study on the impact of absenteeism on increased costs. It determined that there's a statistical correlation of 0.7. What does that indicate for the organization?

Absenteeism significantly increases cost.

Step-by-step explanation:

We are given the following in the question:

The Sensor Dynamics Corporation did a scientific study on the impact of absenteeism on increased costs.

The correlation between the two was found to be 0.7

Correlation:

It is a measure of linear relationship between two quantities. A positive correlation means that an increase in one quantity leads to an increase in another quantity A negative correlation means with increase in one quantity the other quantity decreases. Values between 0 and 0.3 tells about a weak positive linear relationship, values between 0.3 and 0.7 shows a moderate positive correlation and a correlation of 0.7 and 1.0 states a strong positive linear relationship.

Thus, we can say that there is a high positive correlation between absenteeism and cost.

Thus, absenteeism significantly increases cost.