200 150 100 - 8 10 12 Interest Amount
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.
Exercise 33, we saw a plot of mortgages in the United
States (in thousands of dollars) versus the interest rate at
various times over the past 26 years. The
sand and the mean interest rate is 7.74%. The standard
and 1.79% for the interest rates.
gage amount from interest rates? Explain.
from interest rates?
c) What would you predict the mortgage amount would
be if the interest rates climbed to 13%?
d) Do you have any reservations about your prediction in
part c)?
e) If we standardized both variables, what would be the
gage amount from standardized interest rates?
regression equation that predicts standardized interest
rates from standardized mortgage amount?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
