Running head: COURSE PROJECT: PART C
1
Course Project: Part C
Week 7
MATH 534 : Applied Managerial Statistics
Keller Graduate School of Management
Regression and Correlation Analysis
COURSE PROJECT: PART C
2
1.
...
Running head: COURSE PROJECT: PART C
1
Course Project: Part C
Week 7
MATH 534 : Applied Managerial Statistics
Keller Graduate School of Management
Regression and Correlation Analysis
COURSE PROJECT: PART C
2
1. Generate a scatterplot for the specified dependent variable (Y) and the X1 independent
variable, including the graph of the "best fit" line. Interpret.
Fitted Plot Line
0 20 40 60 80 100 120 140
0
10
20
30
40
50
60
According to the Graph the linear relationship there is a positive relationship between
Sales and calls. If number of calls increases the sales also increase and the same if sales increases
the calls increases.
COURSE PROJECT: PART C
3
2. Determine the equation of the "best fit" line, which describes the relationship between the
dependent variable and the selected independent variable.
y = 0.0707x + 31.2
3. Determine the coefficient of correlation. Interpret.
The correlation coefficient between sales and calls is calculated as 0.268711. This is a moderate
positive correlation between number of calls and number of sales. P Value = 0.000
4. Determine the coefficient of determination. Interpret.
It is more commonly known as R squared value. It measures how close the data points
are to the line. The coefficient of determination .0722. 7.2% of the variations can be
explained by knowing the number of calls made.
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.332811341
R Square 0.110763389
Adjusted R Square 0.082974745
Standard Error 4.823306161
Observations 100
5. Test the utility of this regression model. Interpret results, including the p-value.
H0: (Null Hypothesis) – There is not significant correlation
H1: (Alternate Hypothesis)- There is correlation either negative or positive.
COURSE PROJECT: PART C
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P Value = 0.000
ANOVA
df SS MS F Significance F
Regression 3 278.1888971 92.72963236 3.985922758 0.010080614
Residual 96 2233
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