The following table lists several corporate bonds issued during the second quarter of 2015. Company AT&T Bank of America General Electric Goldman Sachs Wells Fargo Verizon Time to Maturity (years) 10 10 2 3 8 Annual Rate (%) 3.40 4.00 5.25 6.15 5.15 3.50 If you spent $10,000 on Bank of America bonds, how much interest would you earn every 6 months? HINT [See Example 3.] How much interest would you earn over the life of the bonds?
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 table lists several corporate bonds issued during the second quarter of 2015.
Company
AT&T
Bank of America
General Electric
Goldman Sachs
Wells Fargo
Verizon
Time to
Maturity
(years)
10
10
2.
3.
8.
7
Annual
Rate (%)
3.40
4.00
5.25
6.15
5.15
3.50
If you spent $10,000 on Bank of America bonds, how much interest would you earn every 6 months? HINT [See Example 3.]
How much interest would you earn over the life of the bonds?
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