The accompanying data below shows the South African population versus expenditure on new construction works by the public sector. Data was obtained from Statistics South Africa for the period between 2014 to 2017. What is the predicted expenditure on new construction if the population is 45 million? Year S.A. Population (per million) (x) Expenditure on new construction (per million) (y) 2014 44.25 18.98 2015 44.75 21.23 2016 45.50 24.62 2017 45.58 20.15 Σx= 179.08 Σy= 84.98 Σxy = 3808.4045 Σx2 = 8018.2514 Σy2 = 1823.120 a = -183.9941 b = 4.5843
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.
The accompanying data below shows the South African population versus expenditure on new construction works by the public sector. Data was obtained from Statistics South Africa for the period between 2014 to 2017. What is the predicted expenditure on new construction if the population is 45 million?
|
Year |
S.A. Population (per million) (x) |
Expenditure on new construction (per million) (y) |
|
2014 |
44.25 |
18.98 |
|
2015 |
44.75 |
21.23 |
|
2016 |
45.50 |
24.62 |
|
2017 |
45.58 |
20.15 |
|
Σx= 179.08 |
Σy= 84.98 |
Σxy = 3808.4045 |
Σx2 = 8018.2514 |
Σy2 = 1823.120 |
|
a = -183.9941 |
b = 4.5843 |
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