A social scientist wants to analyze the relationship between educational attainment and salary. He interviews eight people. The accompanying table shows each person’s years of higher education (Education in years) and corresponding salary (Salary in $1,000s a. Calculate the covariance. What kind of linear relationship exists? b. Calculate and interpret the correlation coefficient.
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 social scientist wants to analyze the relationship between educational attainment and salary. He interviews eight people. The accompanying table shows each person’s years of higher education (Education in years) and corresponding salary (Salary in $1,000s
a. Calculate the
b. Calculate and interpret the
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