Business Statistics STAT 2160
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This 3 page Class Notes was uploaded by Alia Gerhold on Wednesday September 30, 2015. The Class Notes belongs to STAT 2160 at Western Michigan University taught by Loren Heun in Fall. Since its upload, it has received 18 views. For similar materials see /class/216949/stat-2160-western-michigan-university in Statistics at Western Michigan University.
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Date Created: 09/30/15
Business Statistics Stat 2160 Chapter 10 Loren Heun 092908 Correlation Analysis The correlation measures the strength of the relationship between numerical variables for example the height of men and their shoe size or height and weight In these situa tions the goal is not to use one variable to predict another but to show the strength of the relationship that exists between the two numerical variables Correlation Coefficient The strength of an association between two numerical variables in a population is de termined by the correlation coefficient p whose range is 1 to 1 Coefficients Str N0 71 765 735 0 35 65 1 Str r correlation coefficient takes the sign of the slope Perfect negative correlation Perfect positive correlation No correlation p0 Correlation Coefficient Since our interest is the regression analysis the sample correlation coefficient r is de rived from the coefficient of determination r T2 regressionsumofsqua39res SSE at as EST The correlation correlation r I 2 where 7 takes the sign of the slope Correlation Coefficient We can also use y39iz Z xvii Zwri2Zyrz72 Example r 1 Data gtlt y TI 7 83 7 STAT 7 EDIT 7 L1andL2 TI 7 83 7 STAT 7 TESTS 7 LinRegTTest Example r 0866 Data gtlt lt JgtUJH OOU39lU39lM TI 7 83 7 STAT 7 EDIT 7 L1andL2 TI 7 83 7 STAT 7 TESTS 7 LinRegTTest Example r 09527 L a a 777 3 10 TI 7 83 7 STAT 7 EDIT 7 L1andL2 TI 7 83 7 STAT 7 TESTS 7 LinRegTTest