10. A community researcher measured the correlation between the average cost of housing and the crime rate in eight local communities. The results of this hypothetical study are listed in the following table: Average cost of Housing (in thousands of dollars) Crime Rates (per 100,000 population) Y 20 96 80 65 220 22 120 31 180 34 90 70 110 30 300 16 a. Compute the Pearson correlation coefficient b. Compute the coefficient of determination c. Using a two-tailed test at a .05 level of significance, is your decision reject or fail to reject the nul hypothesis?
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.
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