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QUESTION 2:
In statistical terms, the used of correlation is to denote association between two quantitative
variables. The other technique that is often used in these circumstances is regression, which
involves estimating the best straight line to summarize the association. For example, height
and weight, time and examination score, sales and mileage claims and so on so forth.
a) Briefly explain any FIVE (5) significance of Correlation and Regression as a tool for
analysis purpose. (15 marks)
b) Find any simple case of correlation and regression from the online platform. From
the data obtained, you are required to:
i. State the Independent and Dependent Variable.
ii. Draw the Scatter plot using the Microsoft Excel.
iii. Compute the Pearson’s Product Moment Correlation Coefficient (r).
iv. Comment the above result.
v. Derive the linear regression line.
vi. Interpret the slope from (v).
(30 marks)
c) Find the coefficient of determination (R2
) for the above data and interpret the answer.
(5 marks)
(Total: 50 marks)
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