The following data was observed by an economist on product Z Demand(unit). Price /unit 66 15 55 25 50 30 40 15 43 10 49 32 30 18 Required: Calculate product moment correlation coefficient Find the regression line equation Calculate the coefficient of determination Interpret results in (3and2)
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 was observed by an economist on product Z
Demand(unit). Price /unit
66 15
55 25
50 30
40 15
43 10
49 32
30 18
Required:
- Calculate product moment
correlation coefficient - Find the regression line equation
- Calculate the coefficient of determination
Interpret results in (3and2)
Step by step
Solved in 2 steps with 1 images
