an independent researcher wants to investigate if the factors which determine the house rent (Y, measured in dollars), such as the distance of the house frc X,), the time since the house was built (X,), are significant or not. He collects data from 280 prospective locations and estimates the following regression e Ý = 2.5 -0.88X, + 1.98X2 (0.98) (2.14) The 95% confidence interval for the slope coefficient B,, keeping the other variables constant will be ( ) (Round your answer to two decimal places. Enter a minus sign if your answer is negative.) V the hypothesis B, = 0. Based on the calculated confidence intervals, we can say that at the 5% significance level, we will The 99% confidence interval for the slope coefficient B,, keeping the other variables constant will be ( D (Round your answer to two decimal places. Enter a minus sign if your answer is negative.) the hypothesis B2 = 0. Based on the calculated confidence intervals, we can say that at the 1% significance level, we will fail to reject reject
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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