Explore BrainMass

Explore BrainMass

    Correlation Coefficient and Linear Regression

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The following scatter plot shows the relationship between annual income and the amount of life insurance a family may take. Both variables are in thousands of dollars. Based on the scatter plot, do you believe there is a positive or negative linear relationship between the two variables? Do you expect the correlation coefficient to be close or +1 or -1? Explain fully. If you were to find the least square regression line for this data, do you feel this line would give a good prediction of insurance based on sales?
    (Please see the attached file).

    © BrainMass Inc. brainmass.com June 4, 2020, 12:19 am ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/correlation-coefficient-linear-regression-331885

    Attachments

    Solution Summary

    The solution creates a correlation coefficient and linear regression for a scatter plot. A complete, neat and step-by-step solution is provided in the attached file.

    $2.19

    ADVERTISEMENT