The following table shows the selling prices, in thousands of dollars, and the square footages of five randomly selected houses recently sold by a real estate company. The data have a sample correlation coefficient, rounded to three decimal places, of 0.652. Using alpha equals 0.01 and the data given below, test the significance of the population correlation coefficient between a house's selling price and its square footage. What conclusions can you draw? Selling_Price Square_Footage 253 2725 191 1825 258 2193 163 2105 242 2358 What is the p-value?
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 shows the selling prices, in thousands of dollars, and the square footages of five randomly selected houses recently sold by a real estate company. The data have a sample
| Selling_Price | Square_Footage |
| 253 | 2725 |
| 191 | 1825 |
| 258 | 2193 |
| 163 | 2105 |
| 242 | 2358 |
What is the p-value?
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