Correlation conclusions II The correlation betweenFuel Efficiency (as measured by miles per gallon) andPrice of 150 cars at a large dealership is r = -0.34. Explain whether or not each of these possible conclu-sions is justified: a) The more you pay, the lower the fuel efficiency ofyour car will be.b) The form of the relationship between Fuel Efficiencyand Price is moderately straight.c) There are several outliers that explain the lowcorrelation.d) If we measure Fuel Efficiency in kilometers perliter instead of miles per gallon, the correlation willincrease.
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.
Fuel Efficiency (as measured by miles per gallon) and
Price of 150 cars at a large dealership is r = -0.34.
sions is justified:
your car will be.
b) The form of the relationship between Fuel Efficiency
and Price is moderately straight.
c) There are several outliers that explain the low
correlation.
d) If we measure Fuel Efficiency in kilometers per
liter instead of miles per gallon, the correlation will
increase.
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