b. The coefficient of correlation c. The regression equation, with d. For a company with $100 billi
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
![Bloomberg Intelligence listed 50 companies to watch in 2018 (www.bloomberg.com/features/companies-to-watch-2018). Twelve of the
companies are listed here with their total assets and 12-month sales.
Total Assests
($ billions)
134.47
12-Month Sales
($ billions)
Total Assests
($ billions)
12-Month Sales
Company
Eni SpA
Discovery Communications
Dong Energy
Company
AMC Entertainment
($ billions)
68.13
6.59
9.81
4.19
16.15
DSV
6.14
10.54
20.5
Alaska Air
Boohoo.com
9.16
10.7
6.9
AMD
3.37
4.62
0.235
0.545
25.11
Cabot Oil & Gas
5.22
1.58
Danone
52.12
Engie
166.84
72
Experian
7.69
4.34
E Click here for the Excel Data File
a. Draw a scatter diagram.
1. On the graph below, use the point tool to plot the point corresponding to the first Sales and her Earnings Sales1).
2. Repeat the process for the remainder of the sample (Sales 2, Sales 3, ... ).
3. To enter exact coordinates, dooble-click on the point and enter the exact coordinates of x and y.
Tools
90
80
point 2
point 3
70
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Ch13_40 18e.xlsx
MacBook Air](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fb332fd-bcef-441f-ae21-0323be369718%2Fb9a9535c-1ae1-4475-8c17-beb1d241264a%2Fdcrw1u_processed.jpeg&w=3840&q=75)
![Let sales be the dependent variable and total assets the independent variable. (Do not round intermediate calculations. Round your
answers to 4 decimal places.)
b. The coefficient of correlation is
c. The regression equation, with the coefficients, is ý =
d. For a company with $100 billion in assets, predict the 12-month sales is
(S billions).
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Ch13 40 18e.xlsx
MacBook Air
吕口
F3
F7
F6
F4
F5
F2
#
$
&
8.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fb332fd-bcef-441f-ae21-0323be369718%2Fb9a9535c-1ae1-4475-8c17-beb1d241264a%2F0e3hhv_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Assets (X) | Returns (Y) | (x-xbar) | (x-xbar)^2 | (y-ybar) | (y-ybar)^2 | (x-xbar)*(y-ybar) |
134.47 | 68.13 | 98.3663 | 9675.9191 | 50.3213 | 2532.2282 | 4949.9127 |
16.15 | 6.59 | -19.9538 | 398.1521 | -11.2188 | 125.8604 | 223.8561 |
20.5 | 9.16 | -15.6038 | 243.4770 | -8.6488 | 74.8009 | 134.9529 |
3.37 | 4.62 | -32.7338 | 1071.4984 | -13.1888 | 173.9431 | 431.7172 |
5.22 | 1.58 | -30.8838 | 953.8060 | -16.2288 | 263.3723 | 501.2047 |
166.84 | 72 | 130.7363 | 17091.9671 | 54.1913 | 2936.6916 | 7084.7608 |
9.81 | 4.19 | -26.2938 | 691.3613 | -13.6188 | 185.4704 | 358.0880 |
6.14 | 10.54 | -29.9638 | 897.8263 | -7.2688 | 52.8347 | 217.7990 |
10.7 | 6.9 | -25.4038 | 645.3505 | -10.9088 | 119.0008 | 277.1232 |
0.235 | 0.545 | -35.8688 | 1286.5672 | -17.2638 | 298.0371 | 619.2291 |
52.12 | 25.11 | 16.0163 | 256.5203 | 7.3013 | 53.3083 | 116.9386 |
7.69 | 4.34 | -28.4138 | 807.3412 | -13.4688 | 181.4072 | 382.6977 |
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