Correlation conclusions I The correlation between Ageand Income as measured on 100 people is r = 0.75. Explain whether or not each of these possible conclu-sions is justified: a) When Age increases, Income increases as well.b) The form of the relationship between Age and Incomeis straight.c) There are no outliers in the scatterplot of Income vs.Age. d) Whether we measure Age in years or months, the cor-relation will still be 0.75.
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.
and Income as measured on 100 people is r = 0.75.
sions is justified:
b) The form of the relationship between Age and Income
is straight.
c) There are no outliers in the
Age.
relation will still be 0.75.
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