Ethel and Rick are planning a cross-country road trip. They have been gathering data on the cost of renting a vintage car for their road trip. From this data they have formed a linear regression equation with one independent variable, "x." The prediction (regression) equation represents the cost of renting the vintage car for their trip and is: y' 85 + 2x, where x is the total number of miles driven. If they plan to drive 1000 miles, what will be the predicted cost of renting the vintage car?
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.
The given regression equation between the cost of renting the vintage car and the total number of miles driven is as,
Y=85+2x
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