Question: 5. The regression is a superior model compare to correlation to find out the degree of influence of independent variables on the dependent variable. Find out the impact of "X" on “Y" by computing Alpha and Beta coefficient from the following data. X Y Year Advertising Expenditure-(OMR ) Sales (OMR ) 2011 250 765 2012 200 850 2013 175 875 2014 275 650 2015 260 600 2016 180 800 2017 170 825 2018 190 780 2019 225 750 2020 155 790
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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