Answer to Question #212895 in Economics for Olyver Aseri

Question

1.Explain clearly the concept of regression. Explain with suitable example it's role in dealing with business problem

2. Write short notes on the following.

(a) Spunous correlation

(b) Positive and negative correlation

(c)Linear and non linear correlation

(d) Simple, multiple and partial correlation.

Answer 1

1. At the input of the analysis - one dependent variable and several independent variables can affect the dependent. All variables should be measured on an interval or dichotomous scales. If it is necessary to include ordinal variables in the analysis (for example, the degree of agreement with a number of statements, measured on a 5-point scale), they must be pre-digitized (using a statistical method to recode into interval variables).

2. The nature of the relationship between features reflects one of the types of correlation. There are two types of correlation: direct (positive) and inverse (negative).

Direct (positive) correlation reflects the relationship between the signs, in which with the increase of the first sign, the second also increases.

Inverse (negative) correlation is a relationship between features, in which the second decreases with an increase in the first feature.

The multiple correlation indicator characterizes the closeness of the relationship between the set of factors under consideration and the trait under study, or, in other words, assesses the closeness of the joint influence of factors on the result.