EC255 Chapter Notes - Chapter 12: Standard Streams, Null Hypothesis, Confidence Interval
Document Summary
Ec255 chapter 12 textbook: correlation and simple regression analysis. Correlation: measure of the degree of relatedness of variables. E. g. can help researcher determine whether share prices of 2 airlines rise and fall in any related manner. Measures of correlation depends on level of data being analyzed. Ideally, researchers want to solve for p, the population coefficient of correlation. Sample coefficient of correlation: r measure applicable only if both variables have at least an interval level of data. Doesn"t matter which variable is x and y must be computed. Regression analysis: mathematical model or function that can be used to predict or determine one variable by another variable or other variables. Simple regression/bivariate regression: involves 2 variables in which one is predicted by another variable. Dependent variable: variable to be predicted; designed as y. First step in simple regression analysis is to construct a scatter plot. Yields preliminary information about shape and spread of data.