An independent record label sells mp3’s of its songs online. They have been experimenting with different prices for downloading each song. Based on their data, the linear equation that models the average sales (in units) for each price (in cents) is predicted sales = 510,198 - 410.2(price). Which sentence accurately describes the slope of this equation? (A) An increase in prices of 1 cent predicts approximately 410 sales. (B) Sales decrease by approximately 410 for each 1 cent increase in price. (C) Approximately 510,200 customers will pay any price for a download. (D) Sales are predicted to go as low as $509,788. (E) Lowering prices by about 41 cents increases sales by about 510,200.
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.
An independent record label sells mp3’s of its songs online. They have been experimenting with different prices for downloading each song. Based on their data, the linear equation that models the average sales (in units) for each price (in cents) is predicted sales = 510,198 - 410.2(price). Which sentence accurately describes the slope of this equation?
(A) An increase in prices of 1 cent predicts approximately 410 sales.
(B) Sales decrease by approximately 410 for each 1 cent increase in price.
(C) Approximately 510,200 customers will pay any price for a download.
(D) Sales are predicted to go as low as $509,788.
(E) Lowering prices by about 41 cents increases sales by about 510,200.
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