Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)

16th Edition

ISBN: 9780077639709

Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen

Publisher: McGraw-Hill Education

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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 p…

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Textbook Question

Chapter 13, Problem 41CE

The table below shows the number of cars (in millions) sold in the United States for various years and the percent of those cars manufactured by GM.

Chapter 13, Problem 41CE, The table below shows the number of cars (in millions) sold in the United States for various years

Use a statistical software package to answer the following questions.

a. Is the number of cars sold directly or indirectly related to GM’s percentage of the market? Draw a scatter diagram to show your conclusion.
b. Determine the correlation coefficient between the two variables. Interpret the value.
c. Is it reasonable to conclude that there is a negative association between the two variables? Use the .01 significance level.
d. How much of the variation in GM’s market share is accounted for by the variation in cars sold?

Compare Compare Correlation is the measure of the degree of the relationship between the variables. In regression, the relationship between the variables to predict one by another is assessed. In correlation there is no cause and effect between the variables, whereas in regression there is a cause and effect between the variables. By using correlation, we cannot predict anything, but regression is a predictive tool. Coefficients are symmetrical in correlation but in regression they are asymmetrical. Correlation is independent of change in origin and scale, but regression is not independent of change in scale.

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Chapter 13, Problem 40CE

Chapter 13, Problem 42CE

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Chapter 13 Solutions

Loose Leaf for Statistical Techniques in Business and Economics (Mcgraw-hill/Irwin Series in Operations and Decision Sciences)

Ch. 13 - Prob. 1SR Ch. 13 - Prob. 1E Ch. 13 - Prob. 2E Ch. 13 - Bi-lo Appliance Super-Store has outlets in several...Ch. 13 - Prob. 4E Ch. 13 - Prob. 5E Ch. 13 - The owner of Maumee Ford-Volvo wants to study the...Ch. 13 - Prob. 2SR Ch. 13 - Prob. 7E Ch. 13 - Prob. 8E

Ch. 13 - Prob. 9E Ch. 13 - Prob. 10E Ch. 13 - Prob. 11E Ch. 13 - Prob. 12E Ch. 13 - Prob. 3SR Ch. 13 - Prob. 13E Ch. 13 - Prob. 14E Ch. 13 - Prob. 15E Ch. 13 - Prob. 16E Ch. 13 - Prob. 17E Ch. 13 - Prob. 18E Ch. 13 - Prob. 19E Ch. 13 - Prob. 20E Ch. 13 - Prob. 4SR Ch. 13 - Prob. 21E Ch. 13 - Prob. 22E Ch. 13 - Prob. 23E Ch. 13 - Prob. 24E Ch. 13 - Prob. 5SR Ch. 13 - Prob. 25E Ch. 13 - Prob. 26E Ch. 13 - Prob. 27E Ch. 13 - Prob. 28E Ch. 13 - Prob. 29E Ch. 13 - Prob. 30E Ch. 13 - Prob. 6SR Ch. 13 - Prob. 31E Ch. 13 - Prob. 32E Ch. 13 - Prob. 33E Ch. 13 - Refer to Exercise 16. a. Determine the .95...Ch. 13 - Prob. 35E Ch. 13 - A regional commuter airline selected a random...Ch. 13 - Prob. 38CE Ch. 13 - Prob. 39CE Ch. 13 - Prob. 40CE Ch. 13 - The table below shows the number of cars (in...Ch. 13 - Prob. 42CE Ch. 13 - Prob. 43CE Ch. 13 - Prob. 44CE Ch. 13 - The manufacturer of Cardio Glide exercise...Ch. 13 - Prob. 46CE Ch. 13 - Prob. 47CE Ch. 13 - Prob. 48CE Ch. 13 - Prob. 49CE Ch. 13 - Mr. William Profit is studying companies going...Ch. 13 - Prob. 51CE Ch. 13 - Prob. 52CE Ch. 13 - Prob. 53CE Ch. 13 - Prob. 54CE Ch. 13 - A regression analysis relating the current market...Ch. 13 - Prob. 56CE Ch. 13 - Prob. 57CE Ch. 13 - A consumer buying cooperative tested the effective...Ch. 13 - Prob. 59CE Ch. 13 - Prob. 60CE Ch. 13 - TravelAir.com samples domestic airline flights to...Ch. 13 - Prob. 62DE Ch. 13 - Refer to the Baseball 2012 data, which reports...Ch. 13 - Prob. 64DE

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Solution Summary: The author explains how to obtain the correlation coefficient using MegaStat software: In an EXCEL sheet enter the data values of x and y.

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