Data on 10 mid-level managers in insurance industry is given below, in the box. Employees refer to number of employees supervised and salary refer to annual salary in 1000$. Employees 28 31 38 38 43 47 48 49 53 56 Salary 99 102 136 127 157 121 173 197 200 176 Create the regression equation. Forecast the salary of a manager who supervises 90 employees by using the regression equation you created.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Data on 10 mid-level managers in insurance industry is given below, in the box. Employees refer to number of employees supervised and salary refer to annual salary in 1000$.
|
Employees |
28 |
31 |
38 |
38 |
43 |
47 |
48 |
49 |
53 |
56 |
|
Salary |
99 |
102 |
136 |
127 |
157 |
121 |
173 |
197 |
200 |
176 |
- Create the regression equation.
- Forecast the salary of a manager who supervises 90 employees by using the regression equation you created.
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