Q.2: A food manufacturing industry wants to determine the empirical relationship between its revenue and spending on raw material. For this purpose, the research department has taken the data for 8 months against revenue and spending on raw material. Take revenue as dependent variable and spending on raw material as an independent variable. Jan 8. Month Feb Mar Apr 12 May 11 June 10 July 12 Aug 13 Revenue (In thousand Rs) 10 Spending on raw material (In thousand Rs) 10 12 13 11 12 10 12 11 自
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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