Question 7 The summary summation values given below are a random sample of 25 weeks marketing spend and the sales values. A retailer wants to examine the relationship between the marketing spend and the sales values. Ex = 437, Ey = 462, Σ- 20611 , Σν,-20826 , Σν- 20096, n-25 Note: y refers to sales values and x represents marketing spend Calculate the correlation coefficient for the data and comment on the answer, Calculate the values of y-intercept and slope coefficients, in the straight line regression equation. Express the relationship in a linear regression equation. Use the linear regression equation to estimate the sales values if marketing spending R25 (000).
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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