Q1. An Operational Manager is interested in assessing the effect of price (P) on the quantity they sold (S ). Data of eight weeks on price, in dollars, and sales, in casesis summarized below: (Where small letter cases are deviation from mean) i. Fit the regression equation and interpret it ii. Find standard error of the slope coefficient iii. Predict sale if price is 25 dollars iv. Find coefficient of determination and interpret it v. Find coefficient of correlation and interpret it
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.
Q1. An Operational Manager is interested in assessing the effect of price (P) on the quantity they sold (S ). Data of eight weeks on price, in dollars, and sales, in casesis summarized below:
(Where small letter cases are deviation from mean)
i. Fit the regression equation and interpret it
ii. Find standard error of the slope coefficient
iii. Predict sale if price is 25 dollars
iv. Find coefficient of determination and interpret it
v. Find coefficient of
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