Demand for oil changes at Garcia's Garage has been as follows: Month Number of Oil Changes January 43 February 37 March 53 April 61 May 67 June 43 July 52 August 67 a. Use simple linear regression analysis to develop a forecasting model for monthly demand. In this application, the dependent variable, Y, is monthly demand and the independent variable, X, is the month. For January, let X=1; for February, let X=2; and so on. The forecasting model is given by the equation Y=...............+.............X. (Enter your responses rounded to two decimal places.)
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.
|
Month
|
Number of Oil Changes
|
|
January
|
43
|
|
February
|
37
|
|
March
|
53
|
|
April
|
61
|
|
May
|
67
|
|
June
|
43
|
|
July
|
52
|
|
August
|
67
|
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