The follow table gives the approximate economic value associated with various levels of oil recovery in Texas. Find the regression line, and use it to estimate the economic value associated with a recovery level of 70%.
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 follow table gives the approximate economic value associated with various levels of oil recovery in Texas.
Find the regression line, and use it to estimate the economic value associated with a recovery level of 70%.
20.
Step-by-step procedure to obtain Regression line using Excel:
- In Excel sheet, enter and select Percent Recovery in one column and enter Economic value in one column.
- In Insert, select Scatter with only markers under Scatter.
- Right click the points in the graph and select Add trend line.
- Select Linear in Trend/Regression Type.
- Click Display Equation.
- Click Ok.
Output obtained using Excel is given below:
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