I have a set of data that looks at individual decisions on an application, and whether or not that particular decision was flagged or not, aggregated by week. My three variables are
My theory is that the more decisions there are, the higher the relative percentage of flagged decisions.
It's obvious that when I have a higher volume of decisions, I will have a higher volume of flags. So I've created a variable called
flags per decision to help judge if the frequency of
flag increases as
When I plot
flags per decision against the number of
decisions in that week, I see a moderate linear relationship.
I'm wondering if it's correct to deduce a correlation based on the new measure
flags per decision and the number of
decisions. Can I still use simple statistical functions such as Pearson's $r$ to calculate the correlation? Are there any caveats I need to watch out for when working in this way?