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Positive and Negative Correlation - Article Example

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The aim of this research paper is to identify where there could exist a regression model i.e. a high degree of correlation, positive or negative, between the ages of automobile buyers and the amount of money they spend on the purchase of an automobile…
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Positive and Negative Correlation
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Download file to see previous pages There is virtually no existent theory that could justify, predict or estimate the relationship between the age of an automobile buyer and the money spent on the purchase of an automobile. Commons sense, however, dictates that generally older buyers must be having a higher purchasing power and would thus be in a position to spend more on automobiles. Any kind of common sense “relationship” cannot be proved to be correct until and unless it is seconded by collected data and a particular statistical technique is applied to get an accept or reject conclusion. For the scope of this project, I have collected data from an informal source: an old friend of mine has a father in the automobile business. His business is to buy and sell all kinds of cars: brand new and used. He records various details of buyers and sellers in every sale he makes. Amongst the various fields stored, I was able to extract the age of the buyer by calculation: using the Date of Birth provided on the sales deed and the date of sale. The second statistic extracted was the sale amount. A great deal of care and emphasis was kept to maintain confidentiality and privacy of data as per the company rules and regulations. Since the research needed to be carried out on ‘actual’ data, it was necessary that the figures were not fabricated or “random-generated”. However, anonymity in all other aspects was ensured. Out of a total of 1000 records, I obtained a sample of 80 records randomly distributed across the years 2004, 2005, 2006 and 2007. ...Download file to see next pagesRead More
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