An economist conducted a study of the possible association between weekly income and weekly grocery expenditures. The particular interest was whether higher income would result in shoppers spending more on groceries. A random sample of shoppers at a local supermarket was obtained, and a questionnaire was administered asking about the weekly income of the shopper’s family and the grocery bill for that week. The gender of the shopper was also obtained. The correlation was found to be r = 0.649. The standard deviation for the grocery bills was 37.87, and for income it was 309.04. Therefore, the slope of the least-squares line is: 1) 0.694 2) 0.0795 3) 0.0021 4) 5.296 Can you also please explain what least square line is? Why is it used instead of just sticking with regression lines?
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.
An economist conducted a study of the possible association between weekly income and weekly grocery expenditures. The particular interest was whether higher income would result in shoppers spending more on groceries. A random sample of shoppers at a local supermarket was obtained, and a questionnaire was administered asking about the weekly income of the shopper’s family and the grocery bill for that week. The gender of the shopper was also obtained. The
1) 0.694
2) 0.0795
3) 0.0021
4) 5.296
Can you also please explain what least square line is? Why is it used instead of just sticking with regression lines?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
