The following data give X, the price charged per piece of plywood, and Y, the quantity sold (in thousands).Price per Piece, X Thousands of Pieces Sold, Y $6 80 7 60 8 70 9 40 10 0a. Prepare a scatter plot of these data points.b. Compute the covariance.c. Compute and interpret b1.d. Compute b0.e. What quantity of plywood would you expect to sell if the price were $7 per piece?
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 following data give X, the price charged per piece of plywood, and Y, the quantity sold (in thousands).
Price per Piece, X Thousands of Pieces Sold, Y
$6 80
7 60
8 70
9 40
10 0
a. Prepare a
b. Compute the
c. Compute and interpret b1.
d. Compute b0.
e. What quantity of plywood would you expect to sell if the price were $7 per piece?
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