For each of the following pairs of variables, indicate whether you would expect a positive correlation, a negative correlation, or a correlation close to 0. Explain your choice.a. Maximum daily temperature and cooling costsb. Interest rate and number of loan applicationsc. Amount of fertilizer used per acre and crop yield (Hint: As the amount offertilizer is increased, yield tends to increase for a while but then tends to start decreasing.)
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.
For each of the following pairs of variables, indicate whether you would expect a
a. Maximum daily temperature and cooling costs
b. Interest rate and number of loan applications
c. Amount of fertilizer used per acre and crop yield (Hint: As the amount of
fertilizer is increased, yield tends to increase for a while but then tends to start decreasing.)
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