To identify high-paying jobs for people who do not like stress, the following data were collected showing the average annual salary ($1000s) and the stress tolerance for a variety of occupations (Business Insider, November 8, 2013). The stress tolerance for each job is rated on a scale from 0 to 100, where a lower rating indicates less stress. a. Develop a scatter diagram for these data with average annual salary as the independent variable. what does the scatter diagram indicate about the relationship between the two variables? b. Use these data to develop an estimated regression equation that can be used to predict stress tolerance given the average annual salary. c. At the .05 level of significance, does there appear to be a significant statistical relationship between the two variables? d. would you feel comfortable in predicting the stress tolerance for a different occupation given the average annual salary for the occupation? Explain. e. Does the relationship between average annual salary and stress tolerance for these data seem reasonable to you? Explain.
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.
To identify high-paying jobs for people who do not like stress, the following data were collected showing the average annual salary ($1000s) and the stress tolerance for a variety of occupations (Business Insider, November 8, 2013).
The stress tolerance for each job is rated on a scale from 0 to 100, where a lower rating indicates less stress.
a. Develop a
variable. what does the scatter diagram indicate about the relationship between the two variables?
b. Use these data to develop an estimated regression equation that can be used to predict stress tolerance given the average annual salary.
c. At the .05 level of significance, does there appear to be a significant statistical relationship
between the two variables?
d. would you feel comfortable in predicting the stress tolerance for a different occupation given the average annual salary for the occupation? Explain.
e. Does the relationship between average annual salary and stress tolerance for these data seem reasonable to you? Explain.
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