This table shows the relationship between the price (y pence) of 100g of chocolate and the percentage (x%) of cocoa solids in the chocolate. Chocolate Brand x (% cocoa) y (pence) A 10 35 B 20 55 C 30 40 D 35 100 E 40 60 F 50 90 G 60 110 H 70 130 Use excel to draw a scatter diagram to represent this data. Use excel to calculate the regression line of y on x. Use excel to calculate the R2(R Squared) . Interpret the meaning of R2(R Squared). One brand of chocolate is overpriced, Suggest, with a reason, which brand is overpriced. Use the regression line to suggest a fair price for this brand. Comment on the validity of this method for suggesting a fair price.
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.
This table shows the relationship between the price (y pence) of 100g of chocolate and the percentage (x%) of cocoa solids in the chocolate.
|
Chocolate Brand |
x (% cocoa) |
y (pence) |
|
A |
10 |
35 |
|
B |
20 |
55 |
|
C |
30 |
40 |
|
D |
35 |
100 |
|
E |
40 |
60 |
|
F |
50 |
90 |
|
G |
60 |
110 |
|
H |
70 |
130 |
- Use excel to draw a
scatter diagram to represent this data. - Use excel to calculate the regression line of y on x.
- Use excel to calculate the R2(R Squared) .
- Interpret the meaning of R2(R Squared).
- One brand of chocolate is overpriced, Suggest, with a reason, which brand is overpriced.
- Use the regression line to suggest a fair price for this brand.
- Comment on the validity of this method for suggesting a fair price.
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