...1. (a) How does correlation analysis differ from regression analysis? Correlation analysis identifies the relationship between independent and dependent variables while regression analysis uses independent variables to predict dependent variable by means of predictive model. (b) What does a correlation coefficient reveal? Correlation coefficient reveals the degree of association between independent and dependent variables. The closer to the one the value is the more strong relationship. Negative values means negative relationship with r=-1 as perfect negative relationship whereas positive values means positive association with perfect positive association as r=1. (c) State the quick rule for a significant correlation and explain its limitations. r=1 means perfect positive relationship r=-1 means perfect negative relationship r=0 means no relationship Limitations are with respect to its subjectivity because r slightly greater than 0.5 may be treated as good relationship whereas r slightly less than 0.5 may have opposite meaning. (d) What sums are needed to calculate a correlation coefficient? Sums required are: 1) −(−) 2) (−)2 3) (−)2 (e) What are the two ways of testing a correlation coefficient for significance? Two methods are: 1) t-test: The test statistic is:=−21−2 2) z-test: Test statistic is:=ln[+1−1]2 12.48 In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald’s employees....
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...Cumulative Bank Services and Balance In the world of banking, it is often speculated that the more accounts and services a client holds with a particular financial institution, the longer they will stay with that bank. The idea is, the more accounts they open for each client, the more dependent these clients will become to their services, and closing several accounts to join another institution requires time and effort. Avoiding these tedious tasks will manipulate a client to stay with the given financial institution longer as well as prompting them to maintain majority of their funds under the same roof. There are many studies conducted to prove this scenario that is the reason why the “cross-selling” technique has been adopted by the banking industries. The ultimate goal is clear, and all financial institutions believe that “those who die with the most money win”. Whether or not these techniques create a false sense of loyalty, the question is: Does account balance exhibit any correlation to the number of services a client holds with the bank? Numbers don’t lie, we will explore and evaluate this hypothesis using statistics and data sets from Century National Bank to prove whether or not this idea holds true. Hypothesis Statement “Does account balance exhibit any correlation to the number of services a client holds with the bank?" The banking industry as a whole has changed over the past decade in which customer are able to use technology to update account information, view...
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...Applying ANOVA and Nonparametric Tests Simulation This week’s assignment was to take a simulation called Applying ANOVA and Nonparametric Tests. After carefully reviewing the simulation it became easier to answer the questions for the assignment. Researchers sometimes have difficult decisions to make. Applying the analysis of variance (ANOVA) helps businesses to recognize the challenges and opportunities of making a business decision. ANOVA testing is a statistical tool that test each population calculated with a normal distribution (University of Phoenix, 2011). The benefit of this test is it can narrow down the errors of an incorrect test method as long as there is statistical proof (University of Phoenix, 2011). On the other hand, other tests are required because sometimes there are inaccurate assumptions that come with the testing process and businesses than acquire the nonparametric test known as the Kruskal-Wallis test for further analysis (University of Phoenix, 2011). The three lessons learned related to the ANOVA and Nonparametric tests include how businesses can learn how to better monitor, measure and improve their business processes (University of Phoenix, 2011). A successful business is faced with many challenges daily. The goal is to provide quality products and excellent services to their customer’s, employees and shareholders. After reviewing the simulation, some concepts and analytic tools came to mine, which this would...
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...Hypothesis Identification Danielle Rickards RES342 February 13, 2012 Dean Gualco Hypothesis Identification Algae are considered versatile in nature since it has much potential. Algae can be used for multiple purposes including food, bio-filters, industrial fuels and compounds, etc. It seems as though the more research conducted on algae, the more functions that are found. Recently more research studies have been conducted on the uses of algae. “Algae, being one of the widely cultivated species around the world, have been a focus of many research studies to widen its commercial scope”(, 2012, ). Since algae are freely available, the use of algae in any industry could help reduce cost and increase profitability. One of the recent research studies was composed by a team from the School of Architecture and the Built Environment of Singapore Polytechnic. The team was focused on the use of algae in the construction industry. Algae from the catchment areas of water bodies are known for its binding ability. The team used this binding ability of algae for the development of a bio-based binding structure. The team’s hypothesis was that by adding the wet algae to conventional cement, the mixture could be used in the construction industry. Not only would the use of algae reduce the cost of construction but also reduce the toxic alkaline components of the conventional cement, which causes lung and skin disorders. The team determined that combining 40% of the wet algae with 60% of...
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...Nonparametric Hypothesis Test:. Research can be focused in a number of ways, to help refine our topic to a point where we have clear hypotheses statements. If the housing industry was determined to be doing better than the rest of the economy, a hypothesis test might be in order, with mean prices greater than other housing industries. The test to determine the difference is the one sample run (Wald- Wolfowitz test to determine the mean prices to be equal to each home cost (Doane & Seward, 2007). However, March home sales were higher than expected. Our Presidents recent trip aboard has secured enough raw material and additional energy products to secure the USA zone of growth for 100 years. We believe America remains at the top of the economic world and by far the most secure in the housing industry recovery (Dohrmann B, 2011). More often than not, homeowners has maximize their time and search for the best sales for homes by searching information about homes sales and choices(Rosales L. 2011). The housing industry can also find the best buyer’s options that are available to him or her in a similar way that real estate agencies can seek the best sales on homes. However, the homes of the homeowners in the housing industry are set by the regional, state, and local expectations of the buyers and not so much by differences in qualifications of the homeowners. There are still a bright light in our housing futures across the nation (Rosales L, 2011) When the housing industry...
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...Nonparametric Hypothesis Testing Paper Nonparametric Hypothesis Test:. Research can be focused in a number of ways, to help refine our topic to a point where we have clear hypotheses statements. If the housing industry was determined to be doing better than the rest of the economy, a hypothesis test might be in order, with mean prices greater than other housing industries. The test to determine the difference is the one sample run (Wald- Wolfowitz test to determine the mean prices to be equal to each home cost (Doane & Seward, 2007). However, March home sales were higher than expected. Our Presidents recent trip aboard has secured enough raw material and additional energy products to secure the USA zone of growth for 100 years. We believe America remains at the top of the economic world and by far the most secure in the housing industry recovery (Dohrmann B, 2011). More often than not, homeowners has maximize their time and search for the best sales for homes by searching information about homes sales and choices(Rosales L. 2011). The housing industry can also find the best buyer’s options that are available to him or her in a similar way that real estate agencies can seek the best sales on homes. However, the homes of the homeowners in the housing industry are set by the regional, state, and local expectations of the buyers and not so much by differences in qualifications of the homeowners. There are still a bright light in our housing futures across the nation (Rosales L...
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