A random sample of 20 individuals who graduated from harvard ago were asked to report the total amount of debt they had when they graduated from college and the total value of their current investments. the data set is below: Debt Invested 23719 25664 2327 63658 23846 23405 12262 43385 18480 32649 7823 54587 10857 45145 10085 48262 14813 40983 2299 65308 18154 31977 16650 39308 16699 34346 19120 35813 10809 47704 19566 32805 8679 50647 16647 34555 17952 33647 5454 59726 A) using a regression equation for predicting current investment based on college debt. What is the expected change in current investment for each additional dollar of harvard college debt? B) What is the predicted current investment for an individual who had a college debt of $5000? C) What proportion of the variation in current investment is explained by college debt?
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 random sample of 20 individuals who graduated from harvard ago were asked to report the total amount of debt they had when they graduated from college and the total value of their current investments. the data set is below:
| Debt | Invested |
| 23719 | 25664 |
| 2327 | 63658 |
| 23846 | 23405 |
| 12262 | 43385 |
| 18480 | 32649 |
| 7823 | 54587 |
| 10857 | 45145 |
| 10085 | 48262 |
| 14813 | 40983 |
| 2299 | 65308 |
| 18154 | 31977 |
| 16650 | 39308 |
| 16699 | 34346 |
| 19120 | 35813 |
| 10809 | 47704 |
| 19566 | 32805 |
| 8679 | 50647 |
| 16647 | 34555 |
| 17952 | 33647 |
| 5454 |
59726 |
A) using a regression equation for predicting current investment based on college debt. What is the expected change in current investment for each additional dollar of harvard college debt?
B) What is the predicted current investment for an individual who had a college debt of $5000?
C) What proportion of the variation in current investment is explained by college debt?
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