GROUP 1

Algas, Dela Paz, Iradiel, Maupay, Rivera

Classwork No. 7: Correlation and Regression Analysis

Listed are the number of participants and the registration fee for each
conference. Identify the strength of correlation between the two variables and
test if the relationship is significant at 5% level. Assume that data are normally
distributed. Will the R-squared value be meaningful to describe the simple linear
regression equation? Why or why not?

Conference Registration Fee No. of Participants

1 9300 285
2 8500 211
3 5600 277
4 8000 380
5 6400 473
6 3800 381
7 7000 344
8 7500 327
9 8200 389
10 4200 330

Null and Alternative Hypothesis

• Null Hypothesis: There is no significant correlation between the registration fee

and the number of participants. (𝜌 = 0)
• Alternative Hypothesis: There is a significant correlation between the
registration fee and the number of participants. (𝜌 ≠ 0)
Dependent and Independent Variable

• Dependent Variable: No. of Participants

• Independent Variable: Registration Fee

Interpretation of Multiple R and R-square

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.2693

R Square 0.0725

Adjusted R Square -0.043396674

Standard Error 74.04378063

Observations 10
Multiple R
• There is a weak positive correlation between the registration fee and
number of participants since the R value is 0.2693.
R-squared

• There is a low predictive accuracy for regression line because the r-squared
value is less than 0.6.
P-value

The p-value is greater than the significance level of 5% (0.4518>0.05), therefore,

we failed to reject the null hypothesis. Based on the result, we will accept the null
hypothesis that there is no significant relationship between the registration fee and
the number of participants. Since the relationship between two variables is not
significant, we will not proceed to the interpretation of regression coefficients.

Will the R-squared value be meaningful to describe the simple linear regression
equation?

➢ No, because the r-squared value is less than 0.6, so there is a low predictive
accuracy for regression line.