new footwear manufacturer is trying to compete with the major brands by nvesting heavily in Research and Development (R&D). Their goal is to produce a remium lifestyle sneaker that is more comfortable, longer lasting and more stylish han any of their competitors. Below are some data on dollars spent on R&D and ew customers acquired for the last 5 quarters. Eegression Equation: Y=0.5+1.35X New Customers R&D Dollars Acquired in millions) (in thousands) 12 12 15 13 14 18 18 20 25 ased on looking at the numbers and/or sketching a scatter-plot, what conclusion an we draw about the data? O The variables are negatively correlated O You cannot tell until we perform some calculations O There does not appear to be a strong correlation between the variables O The variables are positively correlated
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.
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