Connie Harris, who is in charge of office supplies at First Capital Mortgage Corp., would like to predict the quantity of paper used in the office photocopying machines per month. She believes that the number of loans originated in a month influence the volume of photocopying performed. She has compiled the following recent monthly data: Develop an estimated regression equation for this data set. Place output in cell G1 At .05 level of significance, is the equation significant? Why? Does the equation seem to have a good “fit”? Why? Forecast the amount of paper used in a month when 42 loan originations are expected. Loans Originated in Month Paper Used (000's) 45 22 25 13 50 24 60 25 40 21 25 16 35 18 40 25
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.
| Connie Harris, who is in charge of office supplies at First Capital Mortgage Corp., would like to predict the quantity of paper used in the office photocopying machines per month. She believes that the number of loans originated in a month influence the volume of photocopying performed. She has compiled the following recent monthly data: | |
| Develop an estimated regression equation for this data set. Place output in cell G1 | |
| At .05 level of significance, is the equation significant? Why? | |
| Does the equation seem to have a good “fit”? Why? | |
| Forecast the amount of paper used in a month when 42 loan originations are expected. | |
| Loans Originated in Month | Paper Used (000's) |
| 45 | 22 |
| 25 | 13 |
| 50 | 24 |
| 60 | 25 |
| 40 | 21 |
| 25 | 16 |
| 35 | 18 |
| 40 | 25 |
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
