Annual Revenue Franchise Value (millions of dollars) (millions of dollars) 190 363 275 745 191 504 273 822 217 584 205 496 240 659 248 618 280 816 244 695 279 791 226 660 161 299 175 396 267 747
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.
The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The data below gives the value and the annual revenue for 15 major sport teams. The results are displayed in the accompanying table, and the regression equation and other values are shown below.
b. Determine the standard error of the estimate.
(Round to four decimal places as needed.)
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