A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following (refer Table 4): TABLE 4: Employee Y X1 X2 1 100 10 7 2 90 3 10 3 80 8 9 4 70 5 4 5 60 5 8 6 50 7 5 7 40 1 4 8 30 1 1 a) Run a regression analysis based on the data in Table 4 using Mic. Office EXCEL. Based on the output, propose a regression equation that can be used to predict the number of sales by an employee. (b) Interpret the coefficient value of each independent variable in the constructed model. (c) Is each independent variable sharing a significant linear relationship with the dependent variable? Verify at 0.05 level of significance. Make your conclusion based on the p-value in the EXCEL output.
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 manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee has been with the company (X1) and how he/she scored on a business aptitude test (X2). A random sample of 8 employees provides the following (refer Table 4):
TABLE 4:
| Employee | Y | X1 | X2 |
| 1 | 100 | 10 | 7 |
| 2 | 90 | 3 | 10 |
| 3 | 80 | 8 | 9 |
| 4 | 70 | 5 | 4 |
| 5 | 60 | 5 | 8 |
| 6 | 50 | 7 | 5 |
| 7 | 40 | 1 | 4 |
| 8 | 30 | 1 | 1 |
a) Run a
(b) Interpret the coefficient value of each independent variable in the constructed model.
(c) Is each independent variable sharing a significant linear relationship with the dependent variable? Verify at 0.05 level of significance. Make your conclusion based on the p-value in the EXCEL output.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
