A specialist in hospital administration stated that the number of FTES (full-time employees) in a hospital can be estimated by counting the number of beds in the hospital (a common measure of hospital size). A healthcare business researcher decided to develop a regression model in an attempt to predict the number of FTES of a hospital by the number of beds. She surveyed 10 hospitals and obtained the following data. The data are presented in sequence, according to the number of beds. Number of BedsFTES 23 69 29 95 35 118 42 126 46 125 50 138 54 178 64 156 76 176 78 225 (i) Draw the scatter plot for the variables. (ii) Compute the correlation coefficient for the above data. (iii) What type of relation exits after the result of part (b)? Explain
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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