FastCrete Inc is working to expand its use of analytics based decision making. As a newly hired business analyst, Daniel Ocean has been asked to develop a simple linear model to forecast the company's Warranty Costs (Swiss Francs) as a function of Quality Investment (Swiss Francs). As a first step, using the data in the table below, Danny must determine the regression coeffients for his model. Enter your answers to 2 decimal places. Warranty Costs Quality investment 40794.58 2.16 35199.34 7.44 42268.23 9.62 44386.56 6.03 44209.86 .2 41641.88 5.35 45952.85 0.06 43642.92 6.75 36581.8 4.35 34386.42 5.92 28309.49 8.35 33198.72 6.33 36678.72 3.44 41108.07 0.08 32070.75 0.84 57098.27 6.24
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.
FastCrete Inc is working to expand its use of analytics based decision making. As a newly hired business analyst, Daniel Ocean has been asked to develop a simple linear model to forecast the company's Warranty Costs (Swiss Francs) as a
Enter your answers to 2 decimal places.
| Warranty Costs | Quality investment |
| 40794.58 | 2.16 |
| 35199.34 | 7.44 |
| 42268.23 | 9.62 |
| 44386.56 |
6.03 |
| 44209.86 | .2 |
| 41641.88 | 5.35 |
| 45952.85 | 0.06 |
| 43642.92 | 6.75 |
| 36581.8 | 4.35 |
| 34386.42 | 5.92 |
| 28309.49 | 8.35 |
| 33198.72 | 6.33 |
| 36678.72 | 3.44 |
| 41108.07 | 0.08 |
| 32070.75 | 0.84 |
| 57098.27 | 6.24 |
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