A grocery store manager did a study to look at the relationship between the amount of time (in minutes) customers spend in the store and the amount of money (in dollars) they spend. The results of the survey are shown below. Time 17 30 9 16 23 22 20 18 Money 76 95 21 51 65 83 74 73 r2r2 = (Round to two decimal places) Interpret r2r2 : There is a 75% chance that the regression line will be a good predictor for the amount of money spent at the store based on the time spent at the store. 75% of all customers will spend the average amount of money at the store. Given any group that spends a fixed amount of time at the store, 75% of all of those customers will spend the predicted amount of money at the store. There is a large variation in the amount of money that customers spend at the store, but if you only look at customers who spend a fixed amount of time at the store, this variation on average is reduced by 75%. The equation of the linear regression line is: ˆyy^ = + xx (Please show your answers to two decimal places)
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.
A grocery store manager did a study to look at the relationship between the amount of time (in minutes) customers spend in the store and the amount of money (in dollars) they spend. The results of the survey are shown below.
| Time | 17 | 30 | 9 | 16 | 23 | 22 | 20 | 18 |
|---|---|---|---|---|---|---|---|---|
| Money | 76 | 95 | 21 | 51 | 65 | 83 | 74 | 73 |
- r2r2 = (Round to two decimal places)
- Interpret r2r2 :
- There is a 75% chance that the regression line will be a good predictor for the amount of money spent at the store based on the time spent at the store.
- 75% of all customers will spend the average amount of money at the store.
- Given any group that spends a fixed amount of time at the store, 75% of all of those customers will spend the predicted amount of money at the store.
- There is a large variation in the amount of money that customers spend at the store, but if you only look at customers who spend a fixed amount of time at the store, this variation on average is reduced by 75%.
- The equation of the linear regression line is:
ˆyy^ = + xx (Please show your answers to two decimal places)
Step by step
Solved in 4 steps with 1 images
