a) Create a scatter plot to verify that it is reasonable to assume that the regression of Y on x is linear. b) Fit a straight line using the method of least squares. c) Use the least squares method to estimate alpha
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.
The number of inches that a recently built structure sits on the ground is given by (image) where x is its age in months.
a) Create a scatter plot to verify that it is reasonable to assume that the regression of Y on x is linear.
b) Fit a straight line using the method of least squares.
c) Use the least squares method to estimate alpha.
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