TollGate 5

Unit 5: Regression Analysis

Quantitative Tools and Techniques

Calculate the Pearson's correlation coefficient (r) between the "Time Spent on the Website"
(in minutes) and the "Total Purchase Amount" (in rupees) for the dataset provided below.

Dataset for Correlation Analysis:

Customer ID Time on Website (min) Total Purchase Amount (Rs)

1 15 1200

2 20 2300

3 25 3000

4 30 3100

5 35 3500

1. Interpret the value of the Pearson's correlation coefficient in the context of the
relationship between time spent on the website and total purchase amount.

2. Perform a bivariate regression analysis using Excel to predict the ‘Total Purchase
Amount’ (dependent variable) based on ‘Time Spent on the Website’ (independent
variable) using the dataset provided.

3. Provide the regression equation, including the intercept and coefficient for the
independent variable.

4. Interpret the coefficient for ‘Time Spent on the Website’ and explain its significance
in predicting the total purchase amount.