-2

Busines Anallcs
Regresoion Ceryelation
Strong pooftlue fmpact on -the vantable- Corelatioo
tbe yentables inpacting -he varable
ynder
Corlation
masre of deqee - ofgelatedossof variables
Corelation gveb -tbe strenath l dizection +oe

relatlonghip the vartables .

Positive coYelation, When both woniables move

game digetioo one inc otbr also

inc.yiee yersa InC.

2 correation : Wbem onevariable otbe

dec: &vice versa. such a nelationship has.

-ve corelatiorn. Copp direetion)

corTelatioo : hen ttere is oo gelationship

between theasabled.

Coxrelation analysis io Exceli

Stepii Sclext toe data
|Stgp2 2Cllek om ooert
Seatter plot

Step Once
elernent
Scatlerolot
tab
io made from chat
next
to he plet, cikk trendline
ceck on more options
fromtxod line 2select check boek box
net to
 OSoecttwn plot
pocitive - upoard slope
egattee - dosnsand alope.
Corsclatioo
Jo meaSure comelatioo have 2 metbods:
Coe Sficiemt of eoyyelation
: Coe icient of detesmination

Go. of covrclation()
valus betcem to + 1

T ioicates the alixeioo of relationcbip.

betuocen the
OAo' vale of means

nclationship
Ofermula

(B)
ad 9pendSales
36 100

49

3.
|3 l69
6 100

225
45 430 455 640

984 D -8495- 3450

80 (o5 q1. 6515
dexend

Stooa paeithie corrlaion can be condoded betocen

 hot is a Bcaterr plot ? >for() 2 regress iog-diagra
>gaphical represcntaton of Gine

outlie? hoo to dea with them

DCocf. of determinat ion

t lics betuceo and masures the aoocna

of fit be (acracyof your model.
is the pxoportíon oi voriation in the depnd nt
vahiable tbat con be cxplaincd all the

independent vamiable
O To Piod then
, valw.
can alio reacnted
YE O.48198 R = o.q642?
Iotempretaion,. vani ation Sales be explained
by ad cpnd.

Regpssien tuchniqu eto xploYe tbe xelation

ohip becen eondis dependant ariable
Rrdtpundeat vaniables
can
be uesed n deandl erediction, market siae
pvediction, aalany size estimation ete.

Lincan Bisvon fote Respeian

Rine is y a t bx
wohiah wll be used f lioean
aria lole
aauation, yis dapodeant what,, o e
azonse nanialble pncdit

vaiable.
 245 48
66 36
45 25 4
2
48 36 6
Age
famed eq,uation the veing
dben euaton neqression
ethe find welalet age2 otvalses
ny
fiting beost ofslape caloulate toformula
Method1
(Eormula) Method 1Manl
intncgt
enewnit cach foline chengu
in
 b= 6 (246) - (30)(a)
s(te6)- lso) 430

95 l.166G7
30

1. (b66 (B) -42--35.00o)

5

12.444q 25492

gt41+ 167x Age.

+ 1467 lto)
nge egit
14:269

nie depsion vale, find ge

caleute depesion Jevels usber level is at

Ariety Depesion b c2)-(s4)(a3)

25 <(ara)- (a)²
6o
12
O.5915
S. 5 3o 212

G3
L2 299 294

Depesion 3.155 + 0.64lAnzichy

At Anzicty 20 31ss+ 0.59) (2o)
g 5S. + L|82 6

= l4.4 15
(8.4315 = 3-15525
 To test the signifercee of predteter:
P value o P- value less thao O.05 indicates tbat
Sndependent yaabe fe
the olaniont adieter
of dependent wanfalte '
For the given ad cost R saus in the given qucstion
Lcalulate the e esdoe. f adcot
is
Ad cost Sales YReidvals.
L) (e)
20 4 2452)
2) SO 0 87.654
a3) 5 80 25 s42
a) 40 64 720 88.39

s) /DD l000 10.55 - 8.6.

820 202

a = 82o - (0.18s (2e)

4.255

atba.
.965 + o.133l Ad cost).

Ad cost 201
Salas= .25S + J0.23eo)
4.2 55 t 202: 6E
Cals R09.91
 eXcel bivanate.
8PSS multivaiote.

Method- 2 Setter plot trend ine.

rallcs a scatex plot in

lement + option > Add a dend ine

more oyators in trendlinx add qvation n chart
ise is we can alsoadd R nal
n chant

Mebo d 3
Using Date
with tbe, data
Regten
anays toolpak inotalled.
data'
Then data analyis
click
’In the, dialague. box wkich opes up

labelt box if there ore

yousdata.
headings e
check the reiduals dheck box to caeolate
the

(Feomala) Actual value, bedicted vale.

Iolei tattstHcs.

of tee aladionship.
 overall
model.
H showG the whfc can be
plafocd the vOdiiable.

no. af tndependent vaxjaloles

Hbis Malue.

abeolute me agrethad shaos e

dist of data points oom the

Smaller std e o r ,
Smaller the td ervor better be model

Observatons (o 3 No.

ANoVA

Reageion al fodepondent
voniades
Sianiteance f valy i
3
rjet l, (mutl hyecthesis)
gegreefornîs there or not and hew ognfcart
model fer he data.

able Coe ftefeunts Table