Table contains the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013). Create a scatter plot and find a regression equation between house value and rental income. Then use the regression equation to find the rental income a house worth Rs.230,000 and for a house worth Rs.400,000. Which rental income that you calculated do you think is closer to the true rental income? Table: Data of House Value (000) versus Rental
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.
Table contains the value of the house and the amount of rental income in a year that the house brings in ("Capital and rental," 2013). Create a
Table: Data of House Value (000) versus Rental
|
Renal |
81 |
95 |
121 |
135 |
145 |
165 |
178 |
200 |
2140 |
|
Value |
6656 |
7904 |
12064 |
8320 |
8320 |
13312 |
11856 |
12272 |
8528 |
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