A survey conducted by a research team was to investigate how the education level, tenure in current employment, and age, are related to annual income. A sample 20 emloyees is selected and the data is given below. 1. Develop a correlation matrix with annual income as the dependent variable. What does the correlation indicate about the relationship between the variables and income?
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 survey conducted by a research team was to investigate how the education level, tenure in current employment, and age, are related to annual income. A sample 20 emloyees is selected and the data is given below.
1. Develop a
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