The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in millions) are shown in the table. Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 640. The equation of the regression line is y = 34.756x + 16,820.956. 491 394 17,882 29,841 44,824 31,826 36,848 35,868 20,763 10,922| 30,955 28,561 Issues, x Proceeds, y 423 468 690| 494 74 62| 186 173 O Construct and interpret a 95% prediction interval for the proceeds when the number of issues is 640. Select the correct choice below and fill in the answer boxes to complete your choice. (Round to the nearest million dollars as needed. Type your answer in standard form where "3.12 million" means 3,120,000.) O A. We can be 95% confident that when there are 640 issues, the proceeds will be between S and s O B. There is a 95% chance that the predicted proceeds given 640 issues is between S and S
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.
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