Listed below are paired data comsisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant linear correlation benween advertising cost and profit. Use a significance level of 0.01 and round all vales to 4 decimal places. Advertising Cost Profit 16 14 28 29 32 25 23 10 28 11 21 12 23 Ho: p=0 Ha: pr0 Find the Linear Corrlation Coefficiet Find the p-vale pvahe The p-vale is O Greater than a O Less than (or equal to) a The p-vale leads to a decision to O Do Not Reject Ho O Reject Ho Accept Ho The conclsion is O There is a significant positive linear correlation benween advertising expeme and profit. O There is a significant linear correlation betreen advertising expese and profit. O There is a significant negative linear corelation benween advertising expense and profit. O There is insufficient evidence to make a conclnion about the linear correlation benween advertising expense and profit.
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.
Listed below are paired data consisting of amounts spent on advertising (in millions of dollars) and the profits (in millions of dollars). Determine if there is a significant
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