A farmer's marketing cooperative recorded the volume of wheat harvested by its members from 1991-2004. The cooperative is interested in detecting the long-term trend of the amount of wheat harvested. The data collected is shown in the table. Wheat Harvested by Coop. Member Year Time (y, in thousands of bushels) 1991 1 75 1992 2 78 1993 3 82 1994 4 82 1995 5 84 1996 6 85 1997 7 87 1998 8 91 1999 9 92 2000 10 92 2001 11 93 2002 12 96 2003 13 101 2004 14 102 Find the least squares prediction equation for the model. Use excel to conduct data analysis. Provide detailed interpretation of the results.
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 farmer's marketing cooperative recorded the volume of wheat harvested by its members from 1991-2004. The cooperative is interested in detecting the long-term trend of the amount of wheat harvested. The data collected is shown in the table.
Wheat Harvested by Coop. Member
Year Time (y, in thousands of bushels)
1991 1 75
1992 2 78
1993 3 82
1994 4 82
1995 5 84
1996 6 85
1997 7 87
1998 8 91
1999 9 92
2000 10 92
2001 11 93
2002 12 96
2003 13 101
2004 14 102
Find the least squares prediction equation for the model. Use excel to conduct data analysis. Provide detailed interpretation of the results.
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