You have been hired by Leadership Inc. to examine with their employees how the rate of pay increases per year influences overall job satisfaction (scoring 1 - 100 with higher scores indicating greater job satisfaction). For these variables, find the least-squares regression line and compute ther and r2.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Software procedure for regression in EXCEL.
- Enter the given data in EXCEL sheet.
- Go to Data > Data Analysis > Regression.
- Select job satisfaction and rate of pay column as ranges of y and x
- Select Labels check box.
- Click
The output is given below:
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