In a study of 1991 model cars, a researcher computed the least-squares regression line of price (in dollars) on horsepower. He obtained the following equation for this line. Price = – 6677 + 175× Horsepower Based on the least-squares regression line, what would we predict the cost to be of a 1991 model car with horsepower equal to 200? If the actual cost of a 1991 car with 200 horsepower is $27500, what is the residual? Is the predictionan underestimate or an overestimate? What does the slope of 175 and y intercept of (0,-6677) mean in the context of the problem? The coefficient of determination is ?2=84%. Interpret in the context of the problem. Find the correlation and interpret.
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.
In a study of 1991 model cars, a researcher computed the least-squares regression line of price (in dollars) on horsepower. He obtained the following equation for this line.
Price = – 6677 + 175× Horsepower
Based on the least-squares regression line, what would we predict the cost to be of a 1991 model car with horsepower equal to 200?
If the actual cost of a 1991 car with 200 horsepower is $27500, what is the residual? Is the predictionan underestimate or an overestimate?
What does the slope of 175 and y intercept of (0,-6677) mean in the context of the problem?
The coefficient of determination is ?2=84%. Interpret in the context of the problem. Find the
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