Follow the instructions under the title of “Using Excel’s Regression Tool for the Armand’s Pizza Parlors Example” to develop regression equation and ANOVA table as in Figure 14.13 and answer the following questions: 1. Open the dataset of Armand’s (attached). 2. Follow the instructions under the title of “Using Excel’s Regression Tool for the Armand’s Pizza Parlors Example” to develop regression equation and ANOVA table as in Figure 14.13 (attached). 3. Upload the Figure 14.13. 4. What is the estimated regression equation? 5. Conduct the hypothesis test to test for significance of regression. Can we conclude that there is a significant relationship between student population and sales? Provide the rationale for your answer. Restaurant Population Sales 1 2 58 2 6 105 3 8 88 4 8 118 5 12 117 6 16 137 7 20 157 8 20 169 9 22 149 10 26 202
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.
Restaurant | Population | Sales |
1 | 2 | 58 |
2 | 6 | 105 |
3 | 8 | 88 |
4 | 8 | 118 |
5 | 12 | 117 |
6 | 16 | 137 |
7 | 20 | 157 |
8 | 20 | 169 |
9 | 22 | 149 |
10 | 26 | 202 |
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