PROBLEM : The amount spent on medical expenses per day is correlated with other health factors for 5 adult males. A study came up with the following table: Medical amount spent cost weight 185 for alcohol Age 2100 200 50 2378 250 200 42 1657 100 175 37 2584 200 225 54 2658 250 220 32 Which of the following factors has a significant effect on medical expenses? Create the regression equation for the problem.
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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