In the News
Ice-Cream Sales and the Heatwave | A Classic Example of Strong Positive Correlation
Temperatures and tempers are rising. So, what better sound is there than the jingle of the ice-cream van as it turns the corner - and a queue of eager customers lines up.
This article from the BBC reports on surging demand for ice-creams as the UK sweltered in record-breaking temperatures.
This is a great example of strong positive correlation - where sales of the dependent variable (ice-cream) respond positively to the independent variable (temperature).
The correlation is strong - indicating a close relationship between these two variables in normal circumstances.
Prolonged periods of hot and sunny weather trigger increases in demand for other related products, such as paddling pools, sunscreen and bottled water.
Not surprisingly, some retailers discover their inventory control is not up to the task of meeting these surges in demand and the result is stock-outs and missed orders.