Below is data collected over 6 specific years. The data collected is the Consumer Price Index (CPI) and the cost of tuna. We would like to build a model using the CPI to predict the cost of tuna in a given year. Year 1960 1973 1986 1995 2002 2003 CPI (x) 30.2 48.3 112.3 162.2 191.9 197.8 Cost of tuna (y) 0.15 0.35 1.00 1.25 1.75 2.00 State hypotheses for the hypothesis test for regression. Fill in ANOVA table. What’s your decision at a 5% significance level? Why? State your conclusion. Do we have evidence of a relation between X and Y? Why or why not? Calculate the coefficient of determination (r2). What does this tell us?
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.
Below is data collected over 6 specific years. The data collected is the Consumer Price Index (CPI) and the cost of tuna. We would like to build a model using the CPI to predict the cost of tuna in a given year.
|
Year
|
1960 |
1973 |
1986 |
1995 |
2002 |
2003 |
|
CPI (x)
|
30.2 |
48.3 |
112.3 |
162.2 |
191.9 |
197.8 |
|
Cost of tuna (y) |
0.15 |
0.35 |
1.00 |
1.25 |
1.75 |
2.00 |
State hypotheses for the hypothesis test for regression.
Fill in ANOVA table.
What’s your decision at a 5% significance level? Why?
State your conclusion. Do we have evidence of a relation between X and Y? Why or why not?
Calculate the coefficient of determination (r2). What does this tell us?
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