Correlation, regression and lurking variables
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The regression equation below estimates the relationship between the number of cups of hot chocolate sold (H) and the number of swimmers (N) at the beach [T-scores in ( )]:
H = 252.8 - 2.05 N R2 = 0.45
(2.06) (-3.05)
a. Fully evaluate and interpret these empirical results on the basis of the available statistics.
b. How is it possible that more hot chocolate is sold when fewer people are on the beach? Does this suggest anything about the model?
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Solution Summary
This is a 330 word solution explaining the results of a simple linear regression analysis and how a lurking variable can affect the outcome of correlation and regression analyses.
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