Question 21. The scatter plot below shows the Bl factory output. 300 280 Output 260 240 220 200 4 8. 10 12 labour input What modification should be made to the regression? O The dependent variable should be changed to Infoutput). The regression should have a quadratic term (labour input) as an independent variable. O The regression method cannot be modified because the relationship is not a straight line. O The regression should have a dummy variable which equals 1 if workers have been to university.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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