a. In the given correlation matrix, do you see any problems with multicollinearity? b. Determine the regression equation. Discuss the regression equation. How much does an additional family member add to the amount spent on food? c. What is the value of R2 ?Can we conclude that this value is greater than 0? d. Perform a global test? Using 5% level of significance. e. Would you consider deleting either of the independent variables? Write in detail the plan you will follow?
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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