The annual sales dollars generated by an auto parts counter person depends on the number of years of experience of person and the educational qualification. The educational qualification may be high-school, bachelors, or masters. An organization wants to perform the regression to estimate the annual sales price. 1. How many dummy variables need to use “education qualification” in this regression equation? 2. Build a table to organize the coding. 3. Write a general regression equation and if a salesperson has a master degree how much will sales change according to this model compared to a person with a high school education?
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 annual sales dollars generated by an auto parts counter person depends on the number of years of experience of person and the educational qualification. The educational qualification may be high-school, bachelors, or masters. An organization wants to perform the regression to estimate the annual sales price. 1. How many dummy variables need to use “education qualification” in this regression equation? 2. Build a table to organize the coding. 3. Write a general regression equation and if a salesperson has a master degree how much will sales change according to this model compared to a person with a high school education?
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