Topic 1 Correlation, determination and regression analysis

Question 1

definition correlation analysis

Answer 1

analysis of statistical relationship/coherance/consistence between variables x and y

Question 2

independent variable

Answer 2

x

Question 3

dependent variable

Answer 3

Y

Question 4

correlation coefficient =

Answer 4

r

Question 5

correlation does not equal

Answer 5

causation

Question 6

determination coefficient

Answer 6

explained correlation which is r² (square correlation)

Question 7

function to find correlation

Answer 7

=correl()

Question 8

2 questions that can be solved with the regression analysis

Answer 8

how is the relation between income and monthly savings
can we predict the monthly savings if we know the income?

Question 9

how is the relation between income and monthly savings?

Answer 9

step 1: put data in chart
step 2: add trendline to chart

Question 10

can we predict?

Answer 10

=forecast.linear()

Question 11

time series

Answer 11

evolution of a variable during the time

Question 12

seasonal pattern

Answer 12

short term fluctuations
pattern repeats itself
seasons or social habits

Question 13

cyclic pattern

Answer 13

tendency in the medium or long term

Question 14

trend

Answer 14

movement that runs through the cycle

Question 15

moving average

Answer 15

the average of fixed number of consecutive elements in a time series

Question 16

moving average s

Answer 16

step 1 make a line graph
step 2 adopt y axis

Question 17

moving average function

Answer 17

= Average ()

Question 18

trend line

Answer 18

linear trend
shows the evolution of the variables in the long run
makes predictions for the future values of variable

Question 19

trend function

Answer 19

=trend ()
cttrl shift enter