Essays on Coefficient Of Correlation

Business Class Capstone Project

Introduction In this paper, I will describe and discuss the application of statistical techniques learned in class to a real-world problem. According to the instructions of the assignment, I am a chief analyst for a medium-sized company. I decided that my company is a medium sized diamond store. An executive gave me a data set of diamond sales and asked me to explore this data. The executive wants to know how this data can be used to improve the business. The data will be analyzed by the means of various statistical tools. I will start with the descriptive statistics ...

Correlation analysis is used to show the strength of the relationship between two variables. Coefficient of correlation shows the strength and the direction of the relationship between variables. The coefficient of correlation is one of the most widely utilized and abused statistical measure. The abuse comes in the sense that people sometimes overlook the fact that it measures nothing but the strength of a linear link and does not mean a cause-effect relationship. The correlation is computed by use of a mathematical formula where we obtain values ranging from -1< r < +1. Whereby r is the correlation coefficient. ...

Human development is a process of providing mechanisms through which people can flourish and attain self-actualization in their lives. The rationale of human development as a process goes beyond focusing on economic development as an indicator of people’s wellbeing. It therefore incorporates other dimensions which are crucial in establishing the extent to which people would describe quality life. Traditionally, most economists have used quantitative indicators such as GDP Per capita as a measure of people’s wellbeing in a particular economy. The reality is however, different because quantitative indicators such as these are limited to assessing economic success ...

Risk is defined as uncertainty in broad terms. This uncertainty can be due to a large number of factors, which depend on the type of risk. Some of the common factors which result in this uncertainty can be changes in input parameters, miscalculation of parameters etc. (Kuritzkes, Schuermann, & Weiner, 2002). Risk can result in large and unexpected losses and can really hurt the profitability of companies. However, risk is not always bad and little bit of risk can lead to better financial results. However, the relationship between risk and better results is a lot more complex and depends on ...

Report on sales forecasts

Problem description The company experiences a problem of great variability in sales as well as promotion and advertising expenditures from quarter to quarter. This makes it difficult to determine a sales forecast and prepare a budget for promotion and advertising expenditures.

Developing a multiple regression model

A multiple regression model can be used to determine the sales forecast given the values of the independent variables. In this case, sales of meatloaf mix is the dependent variable while the independent variables are promotion expenditure, advertising spending and economic index.

Description of the data

The data used in developing the model are historical data on each of the variables. They ...