A corporation administers an aptitude test to all new sales representatives. Management is interested in the extent to which this test is able to predict theireventual success. The accompanying table records average weekly sales (inthousands of pesos) and aptitude test scores for a random sample of eightrepresentatives. 1.Plot a scatter diagram 2. Estimate the linear regression of weekly sales on aptitude test scores. 3. Estimate the weekly sales when test scores is 70 4. Determine the coefficient of determination.
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 corporation administers an aptitude test to all new sales representatives.
Management is interested in the extent to which this test is able to predict
theireventual success. The accompanying table records average weekly sales
(inthousands of pesos) and aptitude test scores for a random sample of
eightrepresentatives.
1.Plot a scatter diagram
2. Estimate the linear regression of weekly sales on aptitude test scores. 3. Estimate
the weekly sales when test scores is 70 4. Determine the coefficient of
determination.
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