A car dealership would like to develop a regression model that would predict the number of cars sold per month by a dealership employee based on the employee's number of years of sales experience. The accompanying regression output was developed based on a random sample of employees. ANOVA df SS Regression 1 79.909407 Residual 23 261.210593 Total 24 341.12 Coefficients Standard Error Intercept 7.271539 1.229763 Slope 0.539854 The predicted sales is 8.6 cars. Compute the coefficient of determination and interpret its meaning. The coefficient of determination is (Type an integer or decimal rounded to three decimal places as needed.)
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 car dealership would like to develop a regression model that would predict the number of cars sold per month by a dealership employee based on the employee's number of years of sales experience. The accompanying regression output was developed based on a random sample of employees.
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ANOVA
df
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SS
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|---|---|---|
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Regression
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1
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79.909407
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Residual
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23
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261.210593
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Total
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24
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341.12
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Coefficients
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Standard Error
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Intercept
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7.271539
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1.229763
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Slope
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0.539854
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The predicted sales is 8.6 cars.
Compute the coefficient of determination and interpret its meaning.
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