3. Dealer invoice and list price for cars (thousands of dollars) 36.1 44.0 47.8 32.1 33.5 List price X Invoice price Y 29.8 31.1 32.0 42.1 42.2 a. Using Excel find the value of the correlation coefficient. Ans. b. Using Excel find the equation of the least squares line. Ans. C. Using Excel find the standard error of estimate Se. Ans. d. What is the predicted y value when x = 40 (thousand dollars)? %3D Ans. e. Using the work sheet on the next page and an a = .01, test the claim that p >0, there is a correlation between list price and invoice 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.
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