The following matrix shows the bivariate correlations for houses with garages. Baths Beds Sqft Age Price Baths 1 Beds 0.591 1 Sqft 0.696 0.626 1 Age -0.427 -0.133 -0.069 1 Price 0.643 0.374 0.767 -0.099 1 Baths: # of bathrooms in the house Beds: # of bedrooms in the house Sqft: # of square feet in the house Age: age of the house in years Price: selling price of house Answer the following: a) Do older houses with garages sell for lower or higher prices than newer houses with garages on average? Are older houses with garages smaller or larger than newer houses with garages on average? b) Is the correlation between baths and age weaker or stronger than correlation between beds and price? c) Is the correlation between age and sqft weaker or stronger than the correlation between age and price?
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 following matrix shows the bivariate
| Baths | Beds | Sqft | Age | Price | |
| Baths | 1 | ||||
| Beds | 0.591 | 1 | |||
| Sqft | 0.696 | 0.626 | 1 | ||
| Age | -0.427 | -0.133 | -0.069 | 1 | |
| Price | 0.643 | 0.374 | 0.767 | -0.099 | 1 |
Baths: # of bathrooms in the house
Beds: # of bedrooms in the house
Sqft: # of square feet in the house
Age: age of the house in years
Price: selling price of house
Answer the following:
a) Do older houses with garages sell for lower or higher prices than newer houses with garages on average?
Are older houses with garages smaller or larger than newer houses with garages on average?
b) Is the correlation between baths and age weaker or stronger than correlation between beds and price?
c) Is the correlation between age and sqft weaker or stronger than the correlation between age and price?
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