A 2012 suvey conducted by Idea Works provided data showing the percentage of seats avail- able when customers try to redeem points or miles for free travel. For each airline listed, the column labeled 2011 Percentage shows the percentage of seats available in 2011 and the column labeled 2012 shows the correponding percentage in 2012 (The Wall street Journal, May 17, 2012). Develop a scatter diagram with 2011 Percentage as the independent variable. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? Develop the estimated regression equation. Test for a significant relationship. Use α = 0.05. Did the estimated regression equation provide a good fit?
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.
A 2012 suvey conducted by Idea Works provided data showing the percentage of seats avail- able when customers try to redeem points or miles for free travel. For each airline listed, the column labeled 2011 Percentage shows the percentage of seats available in 2011 and the column labeled 2012 shows the correponding percentage in 2012 (The Wall street Journal, May 17, 2012).
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Develop a
scatter diagram with 2011 Percentage as the independent variable. -
What does the scatter diagram developed in part (a) indicate about the relationship
between the two variables?
-
Develop the estimated regression equation.
-
Test for a significant relationship. Use α = 0.05.
-
Did the estimated regression equation provide a good fit?
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