Find the regression equation for income (in thousands) and tax returns (in thousands). X Y 67 6 51 4 47 2 a) What is the slope? b) What is the y-intercept? c) What is the predicted tax return for someone who made 102 thousand dollars.
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.
Find the regression equation for income (in thousands) and tax returns (in thousands).
|
X |
Y |
|
67 |
6 |
|
51 |
4 |
|
47 |
2 |
a) What is the slope?
b) What is the y-intercept?
c) What is the predicted tax return for someone who made 102 thousand dollars.
Given:
The regression equation for income (in thousands) and tax returns (in thousands) is to be calculated
|
X |
Y |
|
67 |
6 |
|
51 |
4 |
|
47 |
2 |
The values are given as,
∑x = 165
∑y = 12
∑x2 = 9299
∑xy = 700
The value of b is calculated as,
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