The following table gives retail values of a 2017 Corvette for various odometer readings. Odometer Reading Retail Value ($) 13,000 52,275 18,000 51,775 20,000 51,400 25,000 50,375 29,000 49,675 32,000 49,125 (a) Find the equation of the least-squares line for the data. (Where odometer reading is the independent variable, x, and retail value is the dependent variable. Round your numerical values to two decimal places.) ŷ = (b) Use the equation from part (a) to predict the retail price of a 2017 Corvette with an odometer reading of 30,000. Round to the nearest $100. (c) Find the linear correlation coefficient for these data. (Round your answer to four decimal places.) r =
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
| Odometer Reading | Retail Value ($) |
|---|---|
| 13,000 | 52,275 |
| 18,000 | 51,775 |
| 20,000 | 51,400 |
| 25,000 | 50,375 |
| 29,000 | 49,675 |
| 32,000 | 49,125 |
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