In a study of the relation between the price (in thousand pounds) (x) and the number of computers sold (y) monthly, we draw a sample of seven months and obtain the following results The standard deviation of the price is 3.9 thousand pounds The determinant coefficient () = 0.7921 There is an inverse relation between the price and the number of computers sold.
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 the relation between the price (in thousand pounds) (x) and the number of computers sold (y) monthly, we draw a sample of seven months and obtain the following results
The standard deviation of the price is 3.9 thousand pounds
The determinant coefficient () = 0.7921
There is an inverse relation between the price and the number of computers sold.
Page 1 of 4
Find:
- Find the suitable least squares regression line.
- Give a brief interpretation of the values of the Y-intercept and slope calculated in the previous part.
- Predict the number of computers sold when the price of the computer unit is ten thousand pounds.
Step by step
Solved in 3 steps with 8 images
