10. Terry's best friend, Heather, is the owner of Heather's Hondas. Like Terry, Heather sells used cars, and she too would like to try to predict the price of a used car based on the number of miles the car was driven by previous owners. When Heather creates a scatterplot, she notices a linear relationship between these two variables, and she obtains the following regression equation. Predicted price = 18855.05 – 0.101(miles) Heather also finds that r-squared is equal to 46.9%. This means the correlation (or r) between price and miles for Heather's sample of cars must be equal to what value?
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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