Interpret the following three sets of data using scatter chart and regression analysis, using slope , intercept, Coefficient of Determiniation (R2) , regression data (using excel), and 95% confidence interval, P value, do I reject null hypothesis ? Or is it significant ? Generate and explain the derivation of insights using regression analysis and its associated visualization. Differentiate between the signals identified by business analytics and the noise that is inherent in the system. X: C18 (total employees ho
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.
Interpret the following three sets of data using scatter chart and
Generate and explain the derivation of insights using regression analysis and its associated visualization.
Differentiate between the signals identified by business analytics and the noise that is inherent in the system.
- X: C18 (total employees hours worked per week) versus Y: C19 (clinic patients seen per week)
| C18 |
| 8 |
| 22 |
| 35 |
| 40 |
| 57 |
| 73 |
| 78 |
| 87 |
| 98 |
| C19 |
| 6.16 |
| 9.88 |
| 14.35 |
| 24.06 |
| 30.34 |
| 32.17 |
| 42.18 |
| 43.23 |
| 48.76 |
Expert Answer
Let us denote X as the total employees hours worked per week and Y as the clinic patients seen per week.
Excel Procedure:
- Enter X and Y data in Excel
- Go to Data
- Click on Data Analysis……..> ‘Regression’.
- Select Y under ‘Input Y
Range ’. - Select X under ‘Input X Range’.
- Click on ‘OK’.
Output:
From the output,
- slope:0.4891, represents there is 0.4891 units increase in Y as 1 unit increase in X.
- Intercept: 0.8387, represent constant increase in Y.
- Coefficient of determination(R2): 0.9666 or 96.66%, represents 96.66% of the variation in Y is explained by the variable X.
- 95% confidence interval: (0.4078, 0.5704), represents there is 95% chance that the coefficient of X variable is lies between 0.4078 and 0.5704.
Steps to construct scatter plot in Excel:
- Enter the data for x and y in Excel sheet
- Select the columns of x and y.
- Go to Insert menu.
- Click on “Insert scatter or bubble chart” option.
- Select Scatter under Charts.
Excel Output:
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