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. The equation of the regression line is y = 48.267x+ 18,014.33. Complete parts a and b. Issues, x 418 452 687 485 498 396 52 55 183 150 Proceeds, 17,893 28,011 43,462 31,984 66,102 65,336 21,841 10,111 30,790 27,563 y The coefficient of determination is the fraction of the variation in proceeds that can be explained by the variation in issues. The remaining fraction of the variation is unexplained and is due to other factors or to sampling error. (b) Find the standard error of estimate s, and interpret the result. (Round to three decimal places as needed.) How can the standard error of estimate be interpreted? The standard error of estimate of the proceeds for a specific number of issueb is about s, million dollars. The standard error of estimate of the issues for a specific number of proceeds is about s, million dollars.
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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