An accounting firm, in an effort to explain variation in client profitability, collected the data below. Complete parts a through e below. E Click the icon to view the client data, a. Incorporate the client type into a regression analysis using dummy variables. Describe the resulting multiple regression estimate. Let x, represent the hours spent working with the client, let x, be the dummy variable for service clients, and let x, be the dummy variable for governmental clients. Price against Rooms and Neighborhobd (Round to one decimal place as needed.) Profitability Hours 2307 Client Type 44 4150 52 2 229 27 1199 59 1409 27 2 507 23 3 - 690 32 3 3468 49 1 2445 49 1991 29 201 36 3 Client Type: 1, if manufacturing 2, if service 3, if governmental Print Done
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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