A real estate company wants to study the relationship between Home price (in OMR 1000) and the following variables: Floor size (in 100 square feet (X 1 ) Type of Heating (X 2 =1 , if electricity and x 2 =0 , if Gas) , Location of home (X 3 =1 town and X 3 =0 , if in village). Use this to answer the following questions: Then the standard error of beta 1 (S b1 ) is A. None B. 1.7379 C. 4.0169 D.23.7078 E. 0.5754
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.
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