Is economic growth in Asia related to Europe? A linear regression model was constructed to predict the growth in Asian GDP on the basis of growth in European GDP during the years 2000-2020: Response variable: Growth in Asian GDP (%) R2 = 0.265 Term Estimate Intercept 2.19 growth in European GDP (%) 0.61 (a) What is the equation of the regression line? A. growth in Asian GDP = 0.61 + 2.19(growth in European GDP) B. growth in European GDP = 2.19 + 0.61(growth in Asian GDP) C. growth in European GDP = 0.61 + 2.19(growth in Asian GDP) D. growth in Asian GDP = 2.19 + 0.61(growth in European GDP) (b) What is the meaning of the slope? (Growth in European GDP/ Growth in Asian GDP) is predicted to increase by (0.61% / 2.19%) for each additional 1% growth in (Asian GDP/ European GDP). (c) What is the meaning of the intercept? (Growth in European GDP/ Growth in Asian GDP) is predicted to equal (0.61% / 2.19%) when European GDP Growth= 0% / Asian GDP Growth= 0%).
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.
Is economic growth in Asia related to Europe? A linear regression model was constructed to predict the growth in Asian GDP on the basis of growth in European GDP during the years 2000-2020:
Response variable: Growth in Asian GDP (%)
R2 = 0.265
| Term | Estimate |
|---|---|
| Intercept | 2.19 |
| growth in European GDP (%) | 0.61 |
(a) What is the equation of the regression line?
(b) What is the meaning of the slope?
(Growth in European GDP/ Growth in Asian GDP) is predicted to increase by (0.61% / 2.19%) for each additional 1% growth in (Asian GDP/ European GDP).
(c) What is the meaning of the intercept?
(Growth in European GDP/ Growth in Asian GDP) is predicted to equal (0.61% / 2.19%) when European GDP Growth= 0% / Asian GDP Growth= 0%).
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