Suppose a new location opens in an area with a population of 144,000, an average income of $36,000, an average age of 27, and $2,000 spent on advertising in the previous month. a. Use your chosen regression to predict Gross Sales for the month at the new location. (I picked population) b. Suppose actual Gross Sales for the month were $420,624. Does this make sense, given your model and predicted value? 12. Using your chosen regression model, a. Identify the slope and explain what it means, in the context of the model. b. Identify the initial value or y-intercept and explain what it means, in the context of the model.
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.
Suppose a new location opens in an area with a population of 144,000, an average income of
$36,000, an average age of 27, and $2,000 spent on advertising in the previous month.
a. Use your chosen regression to predict Gross Sales for the month at the new location. (I picked population)
b. Suppose actual Gross Sales for the month were $420,624. Does this make sense,
given your model and predicted value?
12. Using your chosen regression model,
a. Identify the slope and explain what it means, in the context of the model.
b. Identify the initial value or y-intercept and explain what it means, in the context of
the model.
![Gross Sales
Population Average Income Average Age Advertising
73,280
2718
19280
62
89,493
7148
18617
58
133,121
21895
20123
57
1500
136,712
23485
21645
55
141,228
21701
73640
59
2400
144,320
21043
22341
41
1500
157,673
25673
81470
47
181,279
28636
23252
48
25000
193,457
32676
17318
45
196,223
36004
67131
43
201,436
33433
24579
41
1200
212,390
35621
31620
37
247,360
39226
23780
35
5000
250,127
38722
63127
37
257,634
40159
21340
32
1200
266,190
40431
25612
30
300
287,320
48821
28370
31
301,466
58102
56121
29
4000
311,212
51323
31112
27
2500
315,617
51580
59107
28
1500
367,439
61318
41180
29
1200
390,411
72054
32609
25
417,392
73563
36128
28
2500
583,170
214641
44320
27
13000
979,810
481323
37170
26
18000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F984251f3-aab4-40ca-9cf0-0f65b3f56fa9%2Fdbd0452f-049c-4ef2-82eb-5e0c9ed3ad97%2Fdcoymb8_processed.png&w=3840&q=75)
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