Linear Regression Ten corvettes between 1 and 6 years old were randomly selected from the classified ads of The Arizona Republic. The following data were obtained, where x denotes age, in years, and y denotes price, in hundreds of dollars. X (age) 6 6 6 2 2 5 4 5 1 Price (100ths) 270 260 275 405 364 295 335 308 405 Predict the price of a one-year-old corvette. Find the Residual of a one-year-old corvette.
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.
Linear Regression
Ten corvettes between 1 and 6 years old were randomly selected from the classified ads of The Arizona Republic. The following data were obtained, where x denotes age, in years, and y denotes price, in hundreds of dollars.
|
X (age) |
6 |
6 |
6 |
2 |
2 |
5 |
4 |
5 |
1 |
|
Price (100ths) |
270 |
260 |
275 |
405 |
364 |
295 |
335 |
308 |
405 |
Predict the price of a one-year-old corvette.
Find the Residual of a one-year-old corvette.
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