Q.2 Since outbreak of COVID-19 pandemic insurance companies started spending on Advertisement of Corona Kavach policy to enhance the revenue due to rising number of cases in India. The data below explains the advertising expenditure and revenue of seven companies. a) Is there any association between advertising expenditure and revenue earned ? b) Use the data to develop a regression line to predict the amount of advertising by revenues? c) What is your interpretation from the calculations in part a and b respectively? |Name of company Birla Sunlife Bharti Axa Religare Health care Маx Bupa Reliance health care HDFC ergo United Insurance Advertising (in Rs.) 1073 Revenues (in Rs.) 408.2 4898 3345 3296 2822 79.7. 123.0 104.6 107.8 2577 829 118.3 114.6
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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