The graph and the Excel summary output below are about the weekend sales and tips at a certain Sonny's restaurant in Tallahassee, FL. Use them to answer the SONNY'S questions that follow. The data was gathered by Sonny's employee Joshua Gonzalez for his group project in my Summer 2007 STA 2122 class. SLRI SONNY'S SCATTERPLOT 250 225 200 D 175 •C 150 E 125 100 *F 75 50 A 25 100 200 300 400 500 600 700 800 900 1000 1100 1200 SALE AMOUNT ($) © 2020 Radha Bose Florida State University Department of Statistics SUMMARY OUTPUT SONNY'S Regression Statistics Multiple R 0.58064672 R Square 0.337150613 Adjusted R Square 0.325722175 Standard Error 28.73607083 Observations 60 TIP ($)
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 points on the sample regression line will have coordinates
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