Brand Sharp Screen Size (inches) Price ($) 47 755 Samsung 50 1135 Samsung 45 890 Sony 42 610 Sharp 41 788 Samsung 47 960 Samsung 41 695 Sharp 38 582 Sharp 48 1025 Sony 41 730 Sony 50 1320 Samsung 33 380 Sharp 38 665 Sharp 33 435 Sharp 51 1395 Samsung 41 880 Sharp 33 525 Samsung 51 1480 Sony 41 960 Sony 51 1575 Sony 47 1310 Sony 47 1440 Sony 51 1730
Scenario: As a data analyst for a retail company, you are tasked with examining the relationship
between televisions screen size, and prices. Your analysis will involve both correlation and
regression methods to quantify and interpret this relationship
Make a Scatterplot of screen size vs. price.
Explain in one sentence, does there appear to
be a positive or a negative correlation
between price and screen size? Paste a
snapshot of the plot here. Please do not copy
paste.
Question 1: What is the value of correlation coefficient
between screen size and price? Discuss the
direction of the relationship (positive,
negative, or zero relationship). Also discuss
the strength of the relationship
Estimate the relationship between screen size
and price using a simple linear regression
model and interpret the estimated
coefficients. In your interpretation, tell the
dollar amount by which price will change for
each unit of increase in screen size. (The
answer for the second part of this question
will come from coefficients of screen size)
Include the manufacturer dummy variable
(Samsung=1, 0 otherwise) and estimate the
relationship between screen size, price and
manufacturer dummy as a multiple linear
regression model
Interpret the slope coefficients and their
significance (p-value) from your output in the
above answer.
Linear Regression Analysis
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