The director of a local Tourism Authority would like to know whether a family’s annual expenditure on recreation (y), measured in $000s, is related to their annual income (x), also measured in $000s. In order to explore this potential relationship, the variables x and y were recorded for 10 randomly selected families that visited the area last year. The results were as follows: Week 1 2 3 4 5 6 7 8 9 10 x 41.2 50.1 52.0 62.0 44.5 37.7 73.5 37.5 56.7 65.2 y 2.4 2.7 2.8 8.0 3.1 2.1 12.1 2.0 3.9 8.9 The summary statistics for these data are: Sum of x data: 520.4 Sum of the squares of x data: 28431.42 Sum of y data: 48 Sum of the squares of y data: 343.74 Sum of the products of x and y data: 2858.63 Calculate the least squares line of y on x and draw the line on the scatter diagram.
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 director of a local Tourism Authority would like to know whether a family’s annual expenditure on recreation (y), measured in $000s, is related to their annual income (x), also measured in $000s. In order to explore this potential relationship, the variables x and y were recorded for 10 randomly selected families that visited the area last year. The results were as follows:
|
Week |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
x |
41.2 |
50.1 |
52.0 |
62.0 |
44.5 |
37.7 |
73.5 |
37.5 |
56.7 |
65.2 |
|
y |
2.4 |
2.7 |
2.8 |
8.0 |
3.1 |
2.1 |
12.1 |
2.0 |
3.9 |
8.9 |
The summary statistics for these data are:
Sum of x data: 520.4 Sum of the squares of x data: 28431.42
Sum of y data: 48 Sum of the squares of y data: 343.74
Sum of the products of x and y data: 2858.63
Calculate the least squares line of y on x and draw the line on the
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