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.
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