You work for a company in the marketing department. manager nas with forecasting sales by month for the next year. You notice that over the past 12 months sales have consistently gone up in a linear fashion,'so you decide to run a regression the company's sales history. If 10 months are sampled and the regression output is given below, what can we conclude about the slope of time? Predictor Coef Stdev t-ratio Constant 485.023 34.5274 14.05 <0.0001 20.765 7.5455 2.75 0.025 time S - 56.651 R-sq = 48.63% R-sq (adj) = 42.21% Analysis of Variance SOURCE DF SS MS F. Regression 24306.4 24306.4 7.57 0.025 Error 25674.9 3209.4 Total 49981.4
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.
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