Determine if there is a significant positive correlation between the number of days since a sales campaign started and the sales at a particular store. Copy and paste information from the ESP Excel sheet, including the p-value and summarize your results. Days after sales campaign Sales 1 $7,000 2 $7,500 3 $8,000 4 $8,500 5 $8,500 6 $7,500 7 $8,000 8 $8,500 9 $9,000 10 $9,500 11 $10,000 12 $11,000 13 $11,500 14 $12,000
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.
- Determine if there is a significant
positive correlation between the number of days since a sales campaign started and the sales at a particular store. Copy and paste information from the ESP Excel sheet, including the p-value and summarize your results.
|
Days after sales campaign |
Sales |
|
1 |
$7,000 |
|
2 |
$7,500 |
|
3 |
$8,000 |
|
4 |
$8,500 |
|
5 |
$8,500 |
|
6 |
$7,500 |
|
7 |
$8,000 |
|
8 |
$8,500 |
|
9 |
$9,000 |
|
10 |
$9,500 |
|
11 |
$10,000 |
|
12 |
$11,000 |
|
13 |
$11,500 |
|
14 |
$12,000 |
a. What is the slope of the regression equation and what does it mean about this problem?
b. Use your regression equation to predict the sales for day 15.
c. Get a 95% prediction interval for sales on day 15.
Step by step
Solved in 3 steps
