A student used multiple regression analysis to study how family spending (y) is influenced by income (x1), family size (x2), and additions to savings (x3). The variables y, x1, and x3 are measured in thousands of dollars. The following results were obtained.
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 student used multiple
ANOVA df SS Regression 3 45.9634 Residual 11 2.6218 Total
Coefficients Standard Error Intercept 0.0136 x1 0.7992 0.074 x2 0.2280 0.190 x3 -0.5796 0.920
a. Write out the estimated regression equation for the relationship between the variables.
b. Compute coefficient of determination. What can you say about the strength of this relationship?
c. Carry out a test to determine whether y is significantly related to the independent variables. Use a 5% level of significance.
d. Carry out a test to see if x3 and y are significantly related. Use a 5% level of significance.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
