The amounts of 6 restaurant bills and the corresponding amounts of the tips are given in the below. Assume that bill amount is the explanatory variable and tip amount the response variable. Use RStudio to find the following. Bill 52.44 88.01 49.72 64.30 70.29 106.27 Tip 7.00 10.00 5.28 7.70 10.00 16.00 (a) Compute the correlation: r= (b) Does there appear to be a significant correlation? Answer: (c) The regression equation is y^= . For parts (d) and (e): Enter your answer in dollars: $xx.xx (d) If the amount of the bill is $90, the best prediction for the amount of the tip is . (e) According to the regression equation, for every $55 increase in the bill, the tip should increase by
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 amounts of 6 restaurant bills and the corresponding amounts of the tips are given in the below. Assume that bill amount is the explanatory variable and tip amount the response variable. Use RStudio to find the following.
(a) Compute the
(b) Does there appear to be a significant correlation?
Answer:
(c) The regression equation is y^= .
For parts (d) and (e): Enter your answer in dollars: $xx.xx
(d) If the amount of the bill is $90, the best prediction for the amount of the tip is .
(e) According to the regression equation, for every $55 increase in the bill, the tip should increase by
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