rtising negatively related with sales? Are both Unemployment and Adver
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.
Is Advertising negatively related with sales?
Are both Unemployment and Advertising statistically significant in this model?
![A manager at a roadside cafe is concerned that the weak economic environment has caused a decline in sales. To offset the
decline in sales, the manager has pursued a strong advertising campaign (billboards up and down the road). She believes
advertising expenditures have a positive influence on sales. To support her claim, the manager estimates the following linear
regression model: Sales =
Bo + B1Unemployment + B2Advertising + E. A portion of the regression results is shown in
the accompanying table.
ANOVA
df
SS
MS
F
Significance F
72.6374
36.3187
4.1460
8.760
Regression
Residual
0.003
14
58.0438
Total
16
130.681
Standard
Coefficients
Error
t Stat
p-Value
0.007
Intercept
Unemployment
Advertising
17.5060
3.9817
4.397
-0.6879
0.2997
-2.296
0.038
0.0266
0.0068
3.932
0.002](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b2b20d-049f-4dcf-af25-64fd11186c52%2Ffca6fb9a-0327-48bf-a500-b28accfa0bb3%2F2u2bbkd_processed.png&w=3840&q=75)
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