Develop an equation to determine the correlation coefficient from a given data set.
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Use linear regression to develop a predictive model for demand for ironing board covers based on sales of irons.
Year--------Sales of Irons (000)----Demand for Covers (000)
1---------------8-------------------------------5
2---------------7-------------------------------2
3--------------- 10------------------------------- 6
4--------------- 6------------------------------- 4
A) Develop the equation.
B) What is the coefficient of correlation for this data?
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The expert develops an equation to determine the correlation coefficient. The solution presents a full explanation with calculations for the answer.
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The equation is: Demand for Covers = 0.554*Sales of Irons
The two are correlated by 0.714
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Here is the output from excel. Assume that demand for covers will ...
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