Q3. Diamond Prices Weight 0.3 0.4 0.5 0.5 1.0 0.7 Price 510 1151 1343 1410 5669 2277 Find the best predicted price for this diamond with a weight of 1.50 carats. Is the result close to the actual price of $16,097? What is wrong with predicting the price of a 1.50-carat diamond? a) Find the value of the linear correlation coefficient ? b) Find the critical values of r from table A-6 using ∝= 0.05 c) Determine whether there is sufficient evidence to support a claim of a linear correlation Between the two variables. d) Find the regression equation, e) Letting the first variable be the predictor (x) variable, find the indicated predicted value.
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.
Q3. Diamond Prices
Weight 0.3 0.4 0.5 0.5 1.0 0.7
Price 510 1151 1343 1410 5669 2277
Find the best predicted price for this diamond with a weight of 1.50 carats. Is the result close to
the actual price of $16,097? What is wrong with predicting the price of a 1.50-carat diamond?
a) Find the value of the linear
b) Find the critical values of r from table A-6 using ∝= 0.05
c) Determine whether there is sufficient evidence to support a claim of a linear correlation
Between the two variables.
d) Find the regression equation,
e) Letting the first variable be the predictor (x) variable, find the indicated predicted value.
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