Age (yr) Price Advertised ($) 1 17,599 2 14,998 2 15,998 4 13,998 4 14,998 5 14,599 5 13,998 6 11,998 7 9,998 7 11,559 8 10,849 8 10,899 10 9,998
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.
Corollas for sale within a 250 mile radius of Redlands,
CA. The table below shows the ages of the cars and the
advertised prices.
a) Make a
b) Describe the association between Age and Price of a
used Corolla.
c) Do you think a linear model is appropriate?
d) Computer software says that R2 = 89.1,. What is the
correlation between Age and Price?
e) Explain the meaning of R2
ity in the price of a used Corolla?
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