4. Which of the following is the most suitable interpretation of the (Pearson) correlation coefficient between production volume and total costs in this problem?* a. There is a perfect positive correlation between production volume and total costs. b. There is a very strong positive correlation between production volume and total costs. c. There is a strong positive correlation between production volume and total costs. d. There is a positive correlation between production volume and total costs. 5. The equation of the regression line is given by* a. y = -116.01 + 0.12x b. y = 1321.32 - 7.64x c. y = 116.01 + 0.12x d. y = 7.64x + 1321.32 6. How much is the estimated total costs if the corresponding production volume for a particular month is 300 units?* Rs 274.80 Rs 287.13 Rs 2,293.11 Rs 3,614.43
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.
4. Which of the following is the most suitable interpretation of the (Pearson)
a. There is a perfect
b. There is a very strong positive correlation between production volume and total costs.
c. There is a strong positive correlation between production volume and total costs.
d. There is a positive correlation between production volume and total costs.
5. The equation of the regression line is given by*
a. y = -116.01 + 0.12x
b. y = 1321.32 - 7.64x
c. y = 116.01 + 0.12x
d. y = 7.64x + 1321.32
6. How much is the estimated total costs if the corresponding production volume for a particular month is 300 units?*
- Rs 274.80
- Rs 287.13
- Rs 2,293.11
- Rs 3,614.43
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