In Jolie’s new Thai restaurant, she observes the age of her customers and notes down which of the groups they belong to – ’18 years old and below’ or ‘above 18 years old’, and whether they spent more than $30 on a single meal - ‘big spender’ or ‘non-big spender’. Given that rate (big spender | above 18 years old) > rate (big spender | 18 years old and below), what conclusion can be made? a) Being a big spender and being above 18 years old are negatively associated. b) Being a big spender and being above 18 years old are positively associated. c) Being above 18 years old is positively associated with visiting her restaurant. d) Being above 18 years old causes one to become a big spender.
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 Jolie’s new Thai restaurant, she observes the age of her customers and notes down which of the groups they belong to – ’18 years old and below’ or ‘above 18 years old’, and whether they spent more than $30 on a single meal - ‘big spender’ or ‘non-big spender’.
Given that rate (big spender | above 18 years old) > rate (big spender | 18 years old and below), what conclusion can be made?
a) Being a big spender and being above 18 years old are negatively associated.
b) Being a big spender and being above 18 years old are positively associated.
c) Being above 18 years old is positively associated with visiting her restaurant.
d) Being above 18 years old causes one to become a big spender.
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