EXPLORING

REGRESSION
ANALYSIS
 Research on some
practical applications of
regression analysis in
business, economics,
and other fields.
CORRELATION ANALYSIS
- Is a statistical method used to determine whether a
relationship between two variables exists.

REGRESSION ANALYSIS
- Is a set of statistical processes for estimating the relationship
among variables.
 If two variables are correlated, we can predict the value of one
variable in terms of the other variable. The relationship or correlation
must be significant. This means that the actual relationship exists in
the population, not just in the sample. The regression analysis is then
used to predict the value of one variable in terms of the other
variable. Thus, we do correlation analysis first before performing
regression analysis. If the test of significance of r yields a significant
results, then regression analysis can be performed. If the test of
significance of r yields no significant results, then regression analysis
should not be performed.
The following are the steps in testing the significance of r:
Step 1: State the null and alternative hypothesis.
Step 2: Compute for the value of t.
Step 3: Compare the computed value of t with the critical value of t, as
found in the table. Based on the null hypothesis, the test calls for a
two-tailed test. The degree of freedom in n – 2.
Step 4: Make the decision.
If the computed value of t is equal or greater than the critical value
of t, reject the null hypothesis then accept the alternative hypothesis.
If the computed value of t is less than the critical value, accept Ho.
Step 5: Summarize the results.
 (Independent variable) causes a change
in (Dependent Variable) and it isn't possible
that (Dependent Variable) could cause a
change in (Independent Variable).
Example 3.
The following data shows number of absences and the number of quizzes missed by
five students. If there is a significant relationship between the two variables, predict the
number of quizzes missed by a student who was absent for 6 days.