StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business Statistics - Term Paper Example

Cite this document
Summary
The author of this paper entitled "Business Statistics" touches upon the issue of business statistics. According to the text, correlation and regression have applications in various fields and business management is no exception…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.6% of users find it useful
Business Statistics
Read Text Preview

Extract of sample "Business Statistics"

Business Statistics – Correlation and Regression I. Introduction a. Correlation and regression have applications in various fields and business management is no exception.b. Regression, which identifies the numeric connection between the variables, is discussed in detail along with the method to formulate a straight line regression equation using the Least Squares methodc. Hence the method to compute the coefficient of determination which gives a numeric value of the goodness of fit is included in the reportII.

Correlation refers to the degree of association between two variables. When two variables are said to be correlated, it indicates that there is a relationship or a pattern in the movement of the two variables.a. The Pearson’s correlation coefficient (R) is computed using the formula: R = Covariance of X and Y / (Std. Dev. of X times Std. Dev. of Y)b. Values of Rc. The association of the two variables depends on the sign and magnitude of the R value calculated. III. Correlation does not indicate causation.

Only the degree of association can be established with the help of correlation measures and the direction of relationship or causation cannot be determined.a. Limitation of correlation is that it can only be applied to proper numeric data.b. It is imperative to note that there might be extra variables which cause movement in the observed variables and these are not taken into account when analyzing the correlation between the two variablesIV. Correlation establishes the association between two variables, whereas regression is to establish a numerical connection between the two variables.

In other words, correlation answers the questions if two variables X and Y are related whereas regression gives the numerical connection between them.a) Straight Line Regression: The regression line is of the form: Y = a + b X, where Y is the dependent variable X is the independent variable a represents the y- intercept, i.e., the value of Y when X is equal to zero b represents the slope of the regression line indicating the sensitivity of Y to changes in Xb) Least Squares Method: The regression line can be estimated based on the Least Squares Method.

The method is based on the concept that the best regression line is the line which is at a minimum distance possible from all the data pointsc) The regression line gives the relationship between the two variables in the form of an equation.d) The least squares method gives us the equation of the line of best fit. It is however essential to estimate the reliability or ‘goodness of fit’ of this regression equatione) The coefficient of determination is the square of the value of R (R2). The coefficient of determination is expressed as a percentage.

In case R is +1 or -1, the R2 value is 1 indicating a perfect fit or a 100 % fit. V. Conclusions

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business Statistics Term Paper Example | Topics and Well Written Essays - 500 words”, n.d.)
Business Statistics Term Paper Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/statistics/1566256-business-statistics
(Business Statistics Term Paper Example | Topics and Well Written Essays - 500 Words)
Business Statistics Term Paper Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/statistics/1566256-business-statistics.
“Business Statistics Term Paper Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/statistics/1566256-business-statistics.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business Statistics

Ethical issues in business statistics

In Business Statistics, which employs the techniques and knowledge of statistics and mathematics into business phenomena to make decision, is now confronted and being challenged by ethical issues of business as well as by Christian point of view towards business in western world where Christianity is dominant.... statistics is such kind of tools which helps to abridge large volume of data into simple number which determines a conclusion.... Employing this concept of ethics in business has created a new dimension in the realm of academic school studying corporate behavior and characteristics, and also in practical business world....
4 Pages (1000 words) Essay

Business Statistics 1 assignment

Using the grades data (available Excel file on Blackboard) for a calculus and a statistics course, draw the appropriate diagram and describe the relationship between the grades in calculus and statistics.... ooking at the above scatter plot it is evident that the scores in statistics are positively linearly related with scores in calculus.... That is to say, those who score highly in calculus are more likely to score highly in statistics as...
4 Pages (1000 words) Assignment

Business Statistics SPSS

In this paper author has used Analysis of Variance (ANOVA) and Test of Homogeneity of Variances for SPSS and Human Resources Managing.... hellip; The Human Resources Managers are the primary determinant of quality in research and higher education.... Therefore, the university collaborates with this department to hence human potential both quantitatively and qualitatively....
4 Pages (1000 words) Research Paper

Business Statistics: Harangue Ltd

"Business Statistics: Harangue Ltd" paper is an analysis of operational competencies at Harangue Ltd.... The author presents findings to the Company's investigation of competitive advantage in the information technology unit; the telemarketing program; and accounting controller activities....
7 Pages (1750 words) Case Study

Financial Mathematics and Business Statistics

The "Financial Mathematics and Business Statistics" paper calculates the economic order quantity, gives recommendation as to the number of units it should include in each order , and determines the point at which a very would be unable to make the monthly payment.... Nevertheless, the results made on the assumption that the company runs its business on a period of 360 days every year....
6 Pages (1500 words) Assignment

Business Statistics for Managers Project Template

The paper "Business Statistics for Managers Project Template" presents probability calculations on data for being either a graduate or undergraduate depending on the binomial distribution, cumulative GPA dependence on high school scores regarding independent and dependent variables....
10 Pages (2500 words) Statistics Project

Financial Mathematics and Business Statistics

The assignment "Financial Mathematics and Business Statistics" focuses on the student's tasks in financial mathematics and Business Statistics.... Using the conditional profits and the probabilities of states of nature, the expected monetary value can be calculated for each of the three states of nature....
7 Pages (1750 words) Assignment

Financial Mathematics and Business Statistics

The "Financial Mathematics and Business Statistics" paper discusses the different types of investment appraisal methods My Velo can use, including a discussion of the advantages and disadvantages of each.... The paper also calculates the amount Adam and Eve to borrow and which size flat to buy....
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us