Estimates for Medicare are given below: Year Cost (billion dollars) 1995 157 1996 178 1997 194 1998 211 1999 229 2000 247 Write the linear equation using the years 1997 and 2000. Write the linear regression equation Using the regression equation, predict the Medicare cost this year. Using the regression equation, interpret the slope in terms of this problem.
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.
Estimates for Medicare are given below:
Year Cost (billion dollars)
1995 157
1996 178
1997 194
1998 211
1999 229
2000 247
- Write the linear equation using the years 1997 and 2000.
- Write the linear regression equation
- Using the regression equation, predict the Medicare cost this year.
- Using the regression equation, interpret the slope in terms of this problem.
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