By looking at the equation of the least‑squares regression line, you can see that the correlation between amount of gas used and degree‑days i
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.
An owner of a home in the Midwest installed solar panels to reduce heating costs. After installing the solar panels, he measured the amount of natural gas used ? (in cubic feet) to heat the home and outside temperature ? (in degree‑days, where a day’s degree‑days are the number of degrees its average temperature falls below 65 ∘F ) over a 23-month period. He then computed the least‑squares regression line for predicting ? from ? and found it to be ?̂ =85+16?. By looking at the equation of the least‑squares regression line, you can see that the
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