The data in cells E1 to F8 represent the number of flash drives sold per day at a local computer shop and their prices. The price is in cells E1 to E8 and Units Sold is in cells F1 to F8. Both data sets have labels in first row. What is the estimated regression equation? Place output in cell G1 What is the coefficient of determination? What does it mean? Is the model significant at .01 level of significance? Why or why not? Predict the number of units sold at a price of $32. What are the three ways to evaluate the significance of this model? Price Units Sold 34 3 36 4 32 6 35 5 30 9 38 2 40 1
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.
| The data in cells E1 to F8 represent the number of flash drives sold per day at a local computer shop and their prices. The price is in cells E1 to E8 and Units Sold is in cells F1 to F8. Both data sets have labels in first row. |
| What is the estimated regression equation? Place output in cell G1 |
| What is the coefficient of determination? What does it mean? |
| Is the model significant at .01 level of significance? Why or why not? |
| Predict the number of units sold at a price of $32. |
| What are the three ways to evaluate the significance of this model? |
| Price | Units Sold |
| 34 | 3 |
| 36 | 4 |
| 32 | 6 |
| 35 | 5 |
| 30 | 9 |
| 38 | 2 |
| 40 | 1 |
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
