Usefulness of correlation - correlation regression analysis, Operation Research

Assignment Help:

Usefulness of Correlation

1.Correlation  is very  useful  to economists  to study  the relationship  between  variables  like  price  and quantity  demanded. To businessmen it helps  to estimate  costs sales  price  and other related variables.

2.Some  variables show  some kind  of relationship, correlation  analysis  helps  in measuring the  degree of relationship between  the variables  like  supply  and demand  price an supply  income  and expenditure etc.

3.The relation  between variables  can be  verified and tested  fro significance with  the help of the  correlation analysis. The effect  of correlation  is to  reduce  the range  of uncertainty of our  prediction.

4. The coefficient  of correlation is a relative measure and we  can compare the  relationship  between  variables which are  expressed in different units.

5.Sampling  error can also  be calculated.

6. Correlation  is the  basis  for the  concept of regression  and ratio of variation.

 


Related Discussions:- Usefulness of correlation - correlation regression analysis

Linear Programming, A paper mill produces two grades of paper viz., X and Y...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

LPP, USE SIMPLE METHOD TO SOLVE THE FOLLOWING LPP MAXIMISE Z=4X1+10X2 SUBJE...

USE SIMPLE METHOD TO SOLVE THE FOLLOWING LPP MAXIMISE Z=4X1+10X2 SUBJECT TO CONSTRAINS, 2X1+X2 2X1+5X2 2X1+3X2 X1, X2>0

Case study and statistical methods, Case Study Methods: It is studying the...

Case Study Methods: It is studying the phenomenon event situation or development through a thorough and detailed analysis or intensive study. The case may be an individual a gr

Simple method, Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 =...

Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X 1, X2 = 0

Examine the future sustainability of business, In your role as a Consultant...

In your role as a Consultant to a renowned organisation or institution, you have been asked to design and submit a research proposal to examine the future sustainability of its bus

Explain briefly the term sensitivity analysis, Question: (a) A company...

Question: (a) A company sells three different products X, Y and Z. The company makes a profit of Rs. 35, Rs. 50 and Rs. 60 per unit on products X, Y and Z respectively. The th

Conflicts of interest and related change in medical research, Conflicts of ...

Conflicts of Interest and Related Change in Medical Research The significant increase in private industry drug studies has spawned three other changes in medical research: med

Linear programming , A paper mill produces two grades of paper viz., X and ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Determining sample size for estimating poportions, Determining Sample Size ...

Determining Sample Size for Estimating poportions It is  necessary  to determining  the sample size for a  problem involving  proportions. This deals  with the percentage of f

One sample sign test - hypothesis testing , One Sample sign Test In...

One Sample sign Test In a one  sample  test the  null  hypothesis μ = μ 0 against an  appropriate alternative on the basis of a random sample of size n we replace each sam

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd