How well does the regression line fit the observed data, what is the sample correlation coefficient between the two variables in this model and how can it be interpreted? Write the sample regression equation clearly defining the variables used. Shengyu is an analyst for a company that provides clients with advice about economicconditions. He notes that the United States (US) is experiencing high inflation at themoment. He wonders if high inflation in the US somehow feeds through to cause highinflation in China. To start his analysis, he downloads data on inflation from the OECDwebsite and runs a simple regression of Chinese inflation on US inflation for data fromQuarter 1 2005 to Quarter 2 2021 (each quarter's data on inflation is in terms of annualpercentage change). The Excel output for this is as follows:spér DO19646SUMMARY OUTPUTRegression StatisticsMultiple RR SquareAdjusted R Square 0.273039Standard ErrorObservations0.5331260.2842231.61437766ANOVAdfSSMSSignificance FRegressionResidual66.23271501 66.23272 25.41338 4.0545E-0664166.7977302 2.606215Total65233.0304453Coefficients Standard Errort StatP-valueInterceptX Variable 1Lower 95% Upper 95% Lower 95.0% Upper 95.0%0.397429191 2.071456 0.042352 0.02930082 1.617213 0.02930082 1.617212980.193938053 5.041168 4.05E-06 0.59023857 1.365110 0.59023857 1.365110170.8232570.977674

Correlation is the degree of relationship between two variables. And the regression predicts the…

How well does the regression line fit the observed data, what is the sample correlation coefficient between the two variables in this model and how can it be interpreted? Write the sample regression equation clearly defining the variables used.

How well does the regression line fit the observed data, what is the sample correlation coefficient between the two variables in this model and how can it be interpreted? Write the sample regression equation clearly defining the variables used.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter1: Equations And Graphs

Section: Chapter Questions

Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...

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Question

Shengyu is an analyst for a company that provides clients with advice about economic
conditions. He notes that the United States (US) is experiencing high inflation at the
moment. He wonders if high inflation in the US somehow feeds through to cause high
inflation in China. To start his analysis, he downloads data on inflation from the OECD
website and runs a simple regression of Chinese inflation on US inflation for data from
Quarter 1 2005 to Quarter 2 2021 (each quarter's data on inflation is in terms of annual
percentage change). The Excel output for this is as follows:
spér DO
19646
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square 0.273039
Standard Error
Observations
0.533126
0.284223
1.614377
66
ANOVA
df
SS
MS
Significance F
Regression
Residual
66.23271501 66.23272 25.41338 4.0545E-06
64
166.7977302 2.606215
Total
65
233.0304453
Coefficients Standard Error
t Stat
P-value
Intercept
X Variable 1
Lower 95% Upper 95% Lower 95.0% Upper 95.0%
0.397429191 2.071456 0.042352 0.02930082 1.617213 0.02930082 1.61721298
0.193938053 5.041168 4.05E-06 0.59023857 1.365110 0.59023857 1.36511017
0.823257
0.977674

Definition Definition Statistical measure used to assess the strength and direction of relationships between two variables. Correlation coefficients range between -1 and 1. A coefficient value of 0 indicates that there is no relationship between the variables, whereas a -1 or 1 indicates that there is a perfect negative or positive correlation.

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