Essays on Regression Line

Abstract

Regression analysis estimates the value of a random variable (dependent variable) for a given value of an associated independent variable. The regression equation provides the formula for such a calculation. In the present case, which is about the analysis of the dependence of total monthly sales on the monthly customer traffic, the consultant first examines to see if there is a correlation between the two variables. To achieve this, the consultant uses the scatterplot, plotting the points on a graph. After analyzing the scatterplot, the consultant is convinced that there exists a strong positive linear correlation between the two ...

Planning future activity plays a crucial role in a company as it plans for the future demands of the market. The future planning of the company for the production, finance, marketing, etc., can be done through forecasting technique. The forecasting plan helps the organization to establish the sales performance goals, get real and accurate pictures of sales, estimates the number of raw materials, the workforce of the production. ABC Furniture Company is one such company that likes to predict the sales for their subsequent year based on the customer traffic data (Shim, 2000). However, before proceeding with the sales ...

About the paper

The paper is commissioned to delineate the linear and log-linear multiple regression model where the dependent variable, earnings per hour, will be regressed against two independent variables, education and experience. As part of this analysis, we will cite multiple journal articles, books and other related sources to learn more about the regression analysis and how the statisticians perform the data analysis these days. Both the regression models, i.e. linear and log-linear multiple regression will be performed in excel and the output will be attached in the appendix section of the paper. In addition, we will also test the significance ...

Discussion

The concept of the correlation coefficient is crystal clear to me. I have understood that the value of correlation coefficient ranges from -1 to 1. The relationship between the variables increases as the value moves away from zero. However, the movement in the negative direction indicates an increase in negative relationship and movement in the positive direction indicates increased positive relationship between the variables. In a case of negative correlation, an increase in the independent variable leads to decrease in the dependent variable. On the other hand, in positive correlation, an increase in independent variable leads to increase independent ...

Report on the relationship between assets and sales

Executive summary A company’s investment in foreign assets has a bearing on the amount of foreign sales it makes. The regression analysis indicates a positive association between the ratio of foreign sales to total sales and the ratio of foreign assets to total assets. This implies that transnational companies should invest more in foreign assets to improve their foreign sales. They should also consider other factors affecting foreign sales such as international marketing strategies including advertising expenditure, among others. Investment in foreign assets is not the only contributor to foreign sales as indicated by the model’s coefficient ...

Introduction

The kinetic characteristics are important for the design of chemical engineering processes. They allow assessing the time required for the reaction and choosing the temperature range suitable for the reaction. The reaction path is observed by measurments the transmittance of the Crystal Violet solution that reacts with sodium hydroxide. The concentration, and the color of the solution changes with the reaction flow, and this is measured by the spectrophotometer.

The data are plotted as concentration - time and logarithm concentration time, and the reaction rate is:

Rate = [Crystal Violet] [Sodium Hydroxide]. Using the excess concentration of one of the reagents, the reaction rate with respect to the other reagent is found from logarithmic plot (Rahul & Chakrabarti ...

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. ...

Question 1

a) Random sampling is a method of sampling in which each member of a population has equal chances of being included into the sample. Each member of the sample is chosen entirely by chance. Since each member has equal chances, one advantage of the random sampling method is that it is fair and unbiased. The random sample chosen can properly represent the population it is taken from. One disadvantage of random sampling is that there is no systematic approach in choosing the sample. If the population being studied becomes larger, the fairness of the random sampling method becomes more ...

Assignment 4

1. The Phillips Curve (a) The Output Gap and the Inflation Rate series are shown in figure 1. Using the Excel formula “=correl”, we find the correlation between these two variables to be -0.00206. The correlation coefficient ranges from -1 to 1, the closer the coefficient is to the extremes, the stronger is the linear relationship between the two variables. In this case, the correlation coefficient is close to zero, so there is almost no relationship between Ygap and Pi. Figure 1

The Output Gap and the Inflation Rate series in 1955 – 2015

(b) Figure 2 shows the Output Gap and the change in the Inflation Rate series. Again, using ...

Question 1

The dream up product is 500 grams brown bread. The survey question was for this discussion was; how much are you willing to pay for a 500 grams loaf of brown bread? Using four prices ranges of between one and four dollars, a sample composing of ten friends and family members were asked how the survey question. In the excel sheet, the results of how many of the respondents were willing to pay a particular price for each of the four ranges was recorded. A scatter diagram of demand against prices was plotted to determine the relationship between price and quantity demanded. ...