Business Statistics Term Paper Example | Topics and Well Written Essays - 500 words

Business Statistics - Term Paper ExampleIt is arrogant to note that there power be extra unsettleds which cause movement in the observed variables and these atomic number 18 not taken into key out when analyzing the correlation between the two variables.It is imperative to note that there might be extra variables which cause movement in the observed variables and these atomic number 18 not taken into account when analyzing the correlation between the two variables.Correlation establishes the association between two variables, whereas regression is to establish a numeric connection between the two variables. In other words, correlation answers the questions if two variables X and Y are related whereas regression gives the numerical connection between them.a) Straight Line Regression The regression account is of the form Y = a + b X, where Y is the dependent variable X is the independent variable a represents the y- intercept, i.e., the hold dear of Y when X is equal to zero b r epresents the slope of the regression plication indicating the sensitivity of Y to changes in Xb) Least Squares Method The regression atmosphere can be estimated found on the Least Squares Method. The method is based on the concept that the top hat regression line is the line which is at a minimum distance possible from all the data points) The regression line gives the kinship between the two variables in the form of an equation.d) The least squares method gives us the equation of the line of best fit. It is, however, essential to estimate the reliability or goodness of fit of this regression equation) The coefficient of determination is the square of the value of R (R2). The coefficient of determination is expressed as a percentage. In case R is +1 or -1, the R2 value is 1 indicating a perfect fit or a 100 % fit.