Is there a significant relationship between an individual's income and the set of variables, age, level of education, and gender (based on a significance level α =05 )? Explain why using one of the p-values in the output tables. b.Which of the three predictor variables are significant at a significance level α =05 ? c. What percentage of the variation in income can be accounted for by the estimated linear regression equation relating income to age, level of education, and gender?
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.
- Shown below is a portion of a computer output for a linear
regression analysis relating an individual's income (y in thousands of dollars) to age (x1 in years), level of education (x2ranging from 1 to 5), and the individual's gender (x3 where 0 = female and 1 = male).
|
|
Coefficient |
Standard Error |
t-statistic |
p-value |
|
Intercept |
15.934 |
1.389 |
11.47 |
0.000 |
|
x1 |
0.625 |
0.094 |
6.65 |
0.000 |
|
x2 |
0.921 |
0.190 |
4.85 |
0.000 |
|
x3 |
–0.510 |
0.920 |
–0.55 |
0.590 |
|
Source of Variation |
Sum of squares |
Degrees of freedom |
Mean square |
F-statistic |
p-value |
|
Regression |
84 |
3 |
28 |
4 |
0.027 |
|
Error |
112 |
16 |
7 |
|
|
|
Total |
196 |
19 |
|
|
|
a. Is there a significant relationship between an individual's income and the set of variables, age, level of education, and gender (based on a significance level α =05 )? Explain why using one of the p-values in the output tables.
b.Which of the three predictor variables are significant at a significance level α =05 ?
c. What percentage of the variation in income can be accounted for by the estimated linear regression equation relating income to age, level of education, and gender?
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