Use the following data provided in the table to calculate the Coefficient of determination R2 to explain the relationship between Income and Happiness. Income Happiness 5 30 7 60 4 20 5 30 5 40 5 30 3 20 8 60 2 1 2 1 Required: a) Estimate the slope (b1) and intercept coefficients (b0) and write the equation of the regression line. Step 1: Calculate b1 Step 2: Calculate b0 Step 3: Write the equation of the regression line
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.
Use the following data provided in the table to calculate the Coefficient of determination R2 to explain the relationship between Income and Happiness.
|
Income |
Happiness |
|
5 |
30 |
|
7 |
60 |
|
4 |
20 |
|
5 |
30 |
|
5 |
40 |
|
5 |
30 |
|
3 |
20 |
|
8 |
60 |
|
2 |
1 |
|
2 |
1 |
Required:
a) Estimate the slope (b1) and intercept coefficients (b0) and write the equation of the regression line.
Step 1: Calculate b1
Step 2: Calculate b0
Step 3: Write the equation of the regression line
Step by step
Solved in 3 steps with 10 images
