A market trader sells ball-point pens on his stall. He sells the pens for a different fixed price, x pens, in each of ten weeks. He notes the number of pens, y that he sells in each of these ten weeks. The results are shown in following table. Pens 12 08 10 13 07 08 10 06 09 11 Sales 101 92 110 120 90 82 93 75 91 105 a- Find the correlation coefficient between pen and sales and test the hypothesis that there is no relation between these variables. b- Find the regression equation of sales to pens. c- Estimate the weekly sells for 15 pens.
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 market trader sells ball-point pens on his stall. He sells the pens for a different fixed price, x pens, in
each of ten weeks. He notes the number of pens, y that he sells in each of these ten weeks. The results are
shown in following table.
Pens 12 08 10 13 07 08 10 06 09 11
Sales 101 92 110 120 90 82 93 75 91 105
a- Find the
between these variables.
b- Find the regression equation of sales to pens.
c- Estimate the weekly sells for 15 pens.
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