The data set below shows the weekly advertising expenditure and income of 12 cosmetic retail merchants. Advertising Cost Income 40 385 20 400 25 395 20 365 30 475 50 440 40 490 20 420 50 560 40 525 25 480 50 510 Construct a scatter diagram. Based on it, is it reasonable to use simple linear regression between the variables? Why?
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 data set below shows the weekly advertising expenditure and income of 12 cosmetic retail merchants.
| Advertising Cost | Income |
| 40 | 385 |
| 20 | 400 |
| 25 | 395 |
| 20 | 365 |
| 30 | 475 |
| 50 | 440 |
| 40 | 490 |
| 20 | 420 |
| 50 | 560 |
| 40 | 525 |
| 25 | 480 |
| 50 | 510 |
Construct a
Based on it, is it reasonable to use simple linear regression between the variables? Why?
advertisinga public promotion of some product or serviceMore (Definitions, Synonyms, Translation)
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