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Suppose this study for which the given data is was with the
purpose to establish the relationship that increase in the
education year increase the income?
Co efficient of correlation what we have two quantitative
phenomena generally we find that by the increase in value of
one variable we notice an increase or decrease in the value of
other variable
Example income(rupee) expenditure (rupee)
Demand(number), supply
As demand increase supply decrease this type of variable
called to be related (in relation).
Now the relationship between two quantitative variables may
be of different kind.
Correlation excel =correl(array1,array2)
Linear correlation when on graph the plotting same straight
line value 1
Negative correlation when the graph plotting goes downwards
value -1
No relation the value near to zero means neoglizble
correlation.
In spss go to graph choose legacy dialog in that choose scatter
then define then take age on x axis and y axis. We find no
relation then go analyze and correlated you will get bivariate.
For both quantitative variables analyze descriptive then cross
tab.
If significant value is less than 5% we can say the variables are
associated with each other otherwise we can say that there is
no association.
Anova is in spss analyze compare mean independent samples
t-test of social category and income.
Companies profit in trimesters of 4 years, 2 variable (profit
and time) total 16 results
Weekly rainfall data for two years = 104 results these type of
data get changes due to four reasons they are called
component of time series data.
1 seasonal effect: is observe if the time series data has time in
smaller factions in year.
2 trend effect: can be observed in any type of time series data.
3 cyclical effect: the cycle effect is observed in long duration.
4 Random effect: is unobservable and it may be due to
earthquake, etc., if we are able to filter out each component
from time series data separately it is called time series data
analysis. And it helps us in prediction of future.
Regression
On the basis of result obtain we can say that y=2.246 -.167
Is regression equation y on x in other words?
income=2.426-3.46*education year
note:- the coefficient of independent variable is – 1.67 minus
sign says education is negatively related with income and 1.67
say that if a person is one year more educated than other his
income will be 2.426 lesser than previous one.
The value 2.426 has signifies or say that if year education of a
person is zero his income will be 2.426 however in many
examples the interpretation of A intercept is not realistic
If we are having one dependent (quantitative) and one
independent in regression equation, it is called simple
regression.
It we have one dependent (quantitative) and more than one
independent then regression is called multiple regression
analysis.
Ques- from the year data of a company regarding its profit we
obtain following regression equation profit
(rupees=4107+1.2* year) can you say that company is
constantly getting profit in every year? Yes, becz the profit
coefficient of time is positive
In year 2001 company profit was (rupees=4 lakh) find the
company’s profit in 2002, 2010