To investigate the relationship between the milage and sales price for a popular car model the pictured scatterplot was used. a) Based on the excel output that's pictured, what is the estimated regression equation that could be used to predict the price given the miles? b) Does the model fit the data? (ie whether the regression relationship is statistically significant) Did the estimated regression equation provide a good fit? (ie use the coefficient of determination to explain variability independent variable) c) Suppose you are considering purchasing a car of this model with 60000 miles. Using the estimated regression equation, predict the 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.
To investigate the relationship between the milage and sales price for a popular car model the pictured
a) Based on the excel output that's pictured, what is the estimated regression equation that could be used to predict the price given the miles?
b) Does the model fit the data? (ie whether the regression relationship is statistically significant) Did the estimated regression equation provide a good fit? (ie use the coefficient of determination to explain variability independent variable)
c) Suppose you are considering purchasing a car of this model with 60000 miles. Using the estimated regression equation, predict the price.
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