Multiple linear regression is used to analyse the effect of a number of independent variables (ISO9000 certification, number of employees, sales, FDI dummy, and age of company) on the dependent variable (profit of a company). The following tables are multiple linear regression output. 1) Is there a linear relationship between the dependent variable and all the independent variables as a group? Give your evidence. Click or tap here to enter text. 2) What percentage of variance (Coefficient of Determination) of company profit is explained by the five independent variables as a group? Value of coefficient of determination: Click or tap here to enter text.
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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