The annual profits for a company are given in the following table, where x represents the number of years since 2007, and y represents the profit in thousands of dollars. Write the linear regression equation that represents this set of data, rounding all coefficients to the nearest hundredth. Using this equation, find the projected profit (in thousands of dollars) for 2015, rounded to the nearest thousand dollars. Years since 2007 (x) Profits (y) (in thousands of dollars) 00 6060 11 8888 22 128128 33 130130 44 192192
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.
| Years since 2007 (x) | Profits (y) (in thousands of dollars) |
| 00 | 6060 |
| 11 | 8888 |
| 22 | 128128 |
| 33 | 130130 |
| 44 | 192192 |
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