he scatter plot below shows the average cost of a patient staying one day in a hospital (with no surgery) in a sample of years between 2000 and 2015. The least squares regression line modeling this data is given by yˆ=−4815+3.765x. A scatterplot has a horizontal axis labeled Year from 2005 to 2015 in increments of 5 and a vertical axis labeled Price ($) from 2660 to 2780 in increments of 20. The following points are plotted: (2003, 2736); (2004, 2715); (2007, 2675); (2009, 2719); (2013, 270). All coordinates are approximate. Interpret the slope of the least squares regression line. Select the correct answer below: The average cost of a day in a hospital decreased by $3.765 each year between 2000 and 2015. The average cost of a day in a hospital increased by $3.765 each year between 2000 and 2015. The average cost of a day in a hospital decreased by $4815 each year between 2000 and 2015. The average cost of a day in a hospital increased by $4815 each year between 2000 and 2015.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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A scatterplot has a horizontal axis labeled Year from 2005 to 2015 in increments of 5 and a vertical axis labeled Price ($) from 2660 to 2780 in increments of 20. The following points are plotted: (2003, 2736); (2004, 2715); (2007, 2675); (2009, 2719); (2013, 270). All coordinates are approximate.
Interpret the slope of the least squares regression line.
Select the correct answer below:
The average cost of a day in a hospital decreased by $3.765 each year between 2000 and 2015.
The average cost of a day in a hospital increased by $3.765 each year between 2000 and 2015.
The average cost of a day in a hospital decreased by $4815 each year between 2000 and 2015.
The average cost of a day in a hospital increased by $4815 each year between 2000 and 2015.
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