A recent article in Bloomberg Businessweek listed the "best small companies". We are interested in the current result of the companies' sales and earnings. A random sample of 12 companies was selected and the sales and earnings, millions of dollars, were reported. Using regression analysis, the following output was produced. Can you conclude that the slope of the regression line is different from Zero? (assume a=.01) a. Yes, reject H1 and conclude the slope is different from zero. b. No, do not reject H0 and conclude the slope is not different from zero. c. Yes, reject H0 and conclude the slope is different from zero. d. No, don't reject H1 and conclude the slope is not different from zero.
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 recent article in Bloomberg Businessweek listed the "best small companies". We are interested in the current result of the companies' sales and earnings. A random sample of 12 companies was selected and the sales and earnings, millions of dollars, were reported. Using
Can you conclude that the slope of the regression line is different from Zero? (assume a=.01)
a. Yes, reject H1 and conclude the slope is different from zero.
b. No, do not reject H0 and conclude the slope is not different from zero.
c. Yes, reject H0 and conclude the slope is different from zero.
d. No, don't reject H1 and conclude the slope is not different from zero.
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