Below are the square footages and sale prices (in thousand of dollars) of seven homes. The square footage is the independent variable and sale prices is the dependent variable. Is the relationship significant? If the square footage of a house in the area is 1600, what is the sale price? Using 3% level of significance. SQFT Sale Price ($) 1924 174.9 1592 136.9 2413 275 2332 219.9 1552 120 1312 99.9 1278 145 Leave your sale price in one decimal place. For the relationship question, denote if it is significant or not significant. The square footage of the area is 600, the sale price would be . The relationship between square footage and sale price is .
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Below are the square footages and sale prices (in thousand of dollars) of seven homes. The square footage is the independent variable and sale prices is the dependent variable. Is the relationship significant? If the square footage of a house in the area is 1600, what is the sale price? Using 3% level of significance.
|
SQFT |
Sale Price ($) |
|
1924 |
174.9 |
|
1592 |
136.9 |
|
2413 |
275 |
|
2332 |
219.9 |
|
1552 |
120 |
|
1312 |
99.9 |
|
1278 |
145 |
Leave your sale price in one decimal place. For the relationship question, denote if it is significant or not significant.
The square footage of the area is 600, the sale price would be . The relationship between square footage and sale price is .
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