Problem 2 locations for its new stores. The management of the chain wanted to know whether a linear relationship exists between weekly take-home pay (x) and weekly food expenditures (y). A random sample of eight households produced the data shown in the following table Household 1 A supermarket chain performed a survey to help determine desirable 2 4 5 6 7 8 550 450 560 340 510 710 470 660 170 100 160 80 120 190 140 140 y al Find the least square regression line. b/ Perform the test Ho: B1 = 0, HA: B1 # 0 (using a = 0.05) to determine whether there is enough evidence to infer that a linear relationship exists between weekly take-home pay (x) and weekly food expenditures (y). %3D
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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