Jane wants to open a fashion boutique business. Before selecting a location, she would like to be able to predict the profit (in pesos) that the store maybe expected to earn per hundred square feet of selling price. She gathered the following data: Store Size (100 sq.ft) Profit (P10,000) 35 20 22 15 27 17 16 9 28 16 12 7 40 22 32 23 Solve for the y-intercept and the slope. Form the equation of the regression line. ANSWER: ______________________ Predict the profit of the fashion boutique business when the store measures 3800 feet. ANSWER: ______________________
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.
Jane wants to open a fashion boutique business. Before selecting a location, she would like to be able to predict the profit (in pesos) that the store maybe expected to earn per hundred square feet of selling price. She gathered the following data:
Store Size (100 sq.ft) |
Profit (P10,000) |
35 |
20 |
22 |
15 |
27 |
17 |
16 |
9 |
28 |
16 |
12 |
7 |
40 |
22 |
32 |
23 |
- Solve for the y-intercept and the slope. Form the equation of the regression line.
ANSWER: ______________________
- Predict the profit of the fashion boutique business when the store measures 3800 feet.
ANSWER: ______________________
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