Listed below is a company's sales in the period 2000 to 2011 along with the national income of the country, where the business is set up. Year National Income (in millions of $) Company's sales (in thousands of $) 2000 305 470 2001 316 485 2002 358 499 2003 350 515 2004 375 532 2005 392 532 2006 400 556 2007 398 576 2008 430 583 2009 456 587 2010 578 601 2011 498 605 Consider the following as the estimated regression analysis using excel that could be used to estimate the company's yearly sales, given the yearly national income. What is the estimated regression equation that can be used to predict the company's sales using the national income? a. y^=328.9817+0.534x b. y^=0.534+328.9817x c. y=328.9817+0.534x d. y=0.534+328.9817x
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.
Listed below is a company's sales in the period 2000 to 2011 along with the national income of the country, where the business is set up.
|
Year |
National Income (in millions of $) |
Company's sales (in thousands of $) |
|
2000 |
305 |
470 |
|
2001 |
316 |
485 |
|
2002 |
358 |
499 |
|
2003 |
350 |
515 |
|
2004 |
375 |
532 |
|
2005 |
392 |
532 |
|
2006 |
400 |
556 |
|
2007 |
398 |
576 |
|
2008 |
430 |
583 |
|
2009 |
456 |
587 |
|
2010 |
578 |
601 |
|
2011 |
498 |
605 |
Consider the following as the estimated
What is the estimated regression equation that can be used to predict the company's sales using the national income?
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