Regression and Correlation Analysis

2189 Words9 Pages
Using MINITAB perform the regression and correlation analysis for the data on CREDIT BALANCE (Y) and SIZE (X) by answering the following. Generate a scatterplot for CREDIT BALANCE vs. SIZE, including the graph of the "best fit" line. Interpret. The scatter plot of Credit balance ($) versus Size show that the slope of the 'best fit' line is upward (positive); this indicates that Credit balance varies directly with Size. As Size increases, Credit Balance also increases vice versa. MINITAB OUTPUT: Regression Analysis: Credit Balance($) versus Size The regression equation is Credit Balance($) = 2591 + 403 Size Predictor Coef SE Coef T P Constant 2591.4 195.1 13.29 0.000 Size 403.22 50.95 7.91 0.000 S = 620.162 R-Sq = 56.6% R-Sq(adj) = 55.7% Analysis of Variance Source DF SS MS F P Regression 1 24092210 24092210 62.64 0.000 Residual Error 48 18460853 384601 Total 49 42553062 Predicted Values for New Observations New Obs Fit SE Fit 95% CI 95% PI 1 4607.5 119.0 (4368.2, 4846.9) (3337.9, 5877.2) Values of Predictors for New Observations New Obs Size 1 5.00 Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE. The equation of the "best fit" line help describes the relationship between Credit Balance and Size is Credit Balance ($) = 2591 + 403.2 Size Determine the coefficient of correlation. Interpret. The coefficient of correlation is given as r = 0.752. The
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