assume the final regression equation from the stepwise regression analysis of the dependent variable cost (C) and the 10 potential independent variables is as follows: C = -5000 + 75 D + 0.4 S - 130 PT + 100 NE Given that the final model is valid, interpret the coefficient of NE: On average, a plant constructed in northeast region of USA costs _____ than a plant constructed in other regions, while keeping other variables constant
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.
assume the final regression equation from the stepwise
C = -5000 + 75 D + 0.4 S - 130 PT + 100 NE
Given that the final model is valid, interpret the coefficient of NE:
On average, a plant constructed in northeast region of USA costs _____ than a plant constructed in other regions, while keeping other variables constant
A) 100 dollars more
B) 100 millions of dollars more
C) 100 millions of dollars less
D) 100 dollars less
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