Please calculate: Parameters a and b Correlation coefficient Determination coefficient Write correlation equation Visualise data in Scatter chart Provide explanation of results Year Sales, MEUR (Yi) Number of clients (Xi) 2010 50 20 2011 80 45 2012 60 30 2013 60 35 2014 110 70 2015 130 75 2016 150 90 2017 180 100 2018 200 120
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 calculate:
- Parameters a and b
Correlation coefficient - Determination coefficient
- Write correlation equation
- Visualise data in Scatter chart
- Provide explanation of results
|
Year |
Sales, MEUR (Yi) |
Number of clients (Xi) |
|
2010 |
50 |
20 |
|
2011 |
80 |
45 |
|
2012 |
60 |
30 |
|
2013 |
60 |
35 |
|
2014 |
110 |
70 |
|
2015 |
130 |
75 |
|
2016 |
150 |
90 |
|
2017 |
180 |
100 |
|
2018 |
200 |
120 |
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