A specialist in hospitality states that the number of Room Sold per month in a hotel (RS) can be estimated by Online Advertising amounts (OA) per month (100 Dollars). A business researcher decided to develop a regression model in an attempt to predict the number of RS by the amounts of OA. He surveyed 12 hotels and obtained the following data. OA RS 23 69 29 95 29 102 35 118 42 126 46 125 50 138 54 178 64 156 66 184 76 176 78 225 Construct a regression line graph and explain how could this regression equation be utilized for better decision making.
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 specialist in hospitality states that the number of Room Sold per month in a hotel (RS) can be estimated by Online Advertising amounts (OA) per month (100 Dollars). A business researcher decided to develop a regression model in an attempt to predict the number of RS by the amounts of OA. He surveyed 12 hotels and obtained the following data.
|
OA |
RS |
|
23 |
69 |
|
29 |
95 |
|
29 |
102 |
|
35 |
118 |
|
42 |
126 |
|
46 |
125 |
|
50 |
138 |
|
54 |
178 |
|
64 |
156 |
|
66 |
184 |
|
76 |
176 |
|
78 |
225 |
Construct a regression line graph and explain how could this regression equation be utilized for better decision making.
Step by step
Solved in 2 steps with 2 images
