The following is a partial computer output of a multiple regression analysis of a data set containing 20 sets of observations on the dependent variable The regression equation is SALEPRIC = 1470 + 0.814 LANDVAL + 0.820 IMPROVAL + 13.5 AREA Predictor Coef SE Coef T P Constant 1470 5746 0.26 0.801 LANDVAL 0.8145 0.5122 1.59 0.131 IMPROVAL 0.8204 0.2112 3.88 0.0001 AREA 13.529 6.586 2.05 0.057 S = 79190.48 R-Sq = 89.7% R-Sq(adj) = 87.8%
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 is a partial computer output of a multiple
The regression equation is
SALEPRIC = 1470 + 0.814 LANDVAL + 0.820 IMPROVAL + 13.5 AREA
|
Predictor
|
Coef
|
SE Coef
|
T
|
P
|
|---|---|---|---|---|
|
Constant
|
1470 | 5746 | 0.26 | 0.801 |
|
LANDVAL
|
0.8145 | 0.5122 | 1.59 | 0.131 |
|
IMPROVAL
|
0.8204 | 0.2112 | 3.88 | 0.0001 |
|
AREA
|
13.529 | 6.586 | 2.05 | 0.057 |
| S = 79190.48 | R-Sq = 89.7% | R-Sq(adj) = 87.8% |
Analysis of Variance
|
Source
|
DF
|
SS
|
MS
|
|---|---|---|---|
|
Regression
|
3 | 8779676741 | 2926558914 |
|
Residual Error
|
16 | 1003491259 | 62718204 |
|
Total
|
19 | 9783168000 |
For the problem above, we want to carry out the significance test about the coefficient of LANDVAL, what is the t-value for this test, and is it significant?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
