The sales manager of a large company selected a random sample of n = 10 salespeople and determined for each one the values of x = years of sales experience and y = annual sales (in thousands of dollars). A scatterplot of the resulting (x, y) pairs showed a linear pattern. (a) Suppose that the sample correlation coefficient is r = 0.75 and that the average annual sales is y = 100. If a particular salesperson is 2 standard deviations above the mean in terms of experience, what would you predict for that person's annual sales? Since the value for experience is 2 standard deviations above the mean experience, you can predict annual sales will be ________________ standard deviations above the mean annual sales. (b) If a particular person whose sales experience is 1.7 standard deviations below the average experience is predicted to have an annual sales value that is 1 standard deviation below the average annual sales, what is the value of r? (Round your answer to two decimal places.) r =
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 sales manager of a large company selected a random sample of n = 10 salespeople and determined for each one the values of x = years of sales experience and y = annual sales (in thousands of dollars). A
(x, y)
pairs showed a linear pattern.
(a)
Suppose that the sample
y = 100.
If a particular salesperson is 2 standard deviations above the
Since the value for experience is 2 standard deviations above the mean experience, you can predict annual sales will be ________________
standard deviations above the mean annual sales.
(b)
If a particular person whose sales experience is 1.7 standard deviations below the average experience is predicted to have an annual sales value that is 1 standard deviation below the average annual sales, what is the value of r? (Round your answer to two decimal places.)
r =
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