10) The following computer printout is for the following multiple linear regression model, G= Bo + BIPg + B2DI+ B3Pnc+ e, where G is demand for gasoline, Pg is the price of gasoline, DI is disposable income, and Pnc is the price of a new car. ANOVA Significance df SS MS F Regression 3 39522.14 13174.05 Residual 15 313.777 17.43206 Total 18 39835.91 Standard Coefficients Error P-value Intereept -136.52 10.96646 Pg -22.3587 7.290932 DI 0.044582 0.013864 Pne -54.4312 0.221501 a. Interpret parameters of Pg (B,). b. Is the parameter of Pg (B) significant? Use a = 0.05 and interpret your results. c. Identify variance of the error term (s) from the printout. d. Calculate and interpret R. e. What is the meaning of the P-value for Pnc (0.221501)?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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