Month Sales (Thousands) Number of Calls Sales (Thousands) Jan 115 30 115 Feb 102 25 102 March 123 32 123 April May 99 23 99 112 31 112 June 106 24 106 July 82 22 82 Aug Sept 109 28 109 120 33 120 Oct 111 25 111 Nov 81 19 81 Dec 89 20 89 intercept = slope = # of calls = Sales forecast =
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.
please answer in excel
Greenapple Services Inc. calls previous customers to introduce and sell their new products every months.The following data have been collected for the past year showing sales and number of calls on the same month:
- a) Develop a regression equation to forecast the Sales as a
function of the calls. - b) Suppose that the company would like to place 32 calls this month. Estimate the Sales in response to this amount of calls.
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