Demand for Smartphones The following table shows worldwide sales of a type of phone and their average selling prices in 2012, 2013, and 2017. Year 2012 2013 2017 Selling Price p ($100) 4 3 2 Sales q (billions) 0.6 1 2 Find the regression line (round coefficients to one decimal place). q(p) = Use the regression line to estimate the demand (in millions of units sold) when the selling price was $340. million
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.
| Year | 2012 | 2013 | 2017 |
|---|---|---|---|
| Selling Price p ($100) | 4 | 3 | 2 |
| Sales q (billions) | 0.6 | 1 | 2 |
Using Excel, we can perform regression analysis as follows,
- Enter data into excel
- Go to Data-> Data analysis->Regression->Select sales in Y range and selling price in X range->Tick on label and select output range->OK
We get the result as follows:
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