# Correlation and Regression

Scenario:

Data set presents a sample of the number of defective flash drives produced by a small manufacturing company over the last 30 weeks. The company’s operations manager believes that the number of defects produced by the process is less than seven defective flash drives per week.

Please interpret and explain the regression equation for predicting the number of defective flash drives over time (in weeks), the correlation coefficient r and the coefficient of determination R2.

Submit a Word document 1-2 pages that include the following critical elements must be addressed:

A. On the spreadsheet attached – for the scatter plot comment on the strength and direction of the association between the variables using the scatterplot.

B. Correlation sheet – check if this value supports the argument in part A.

C .Regression sheet – report the values of the intercept coefficient and the slope coefficient. Interpret what these values indicate.

D. Use the regression output in part C and report the R2 value, interpret what this value indicates.

E .A simple regression with one independent variable, the square of the correlation coefficient equals the R2 value. Please verify that this relationship holds true.

F .Residuals – Verify if the quantitative data condition, Linearity condition, outlier conditions and equal spread condition are satisfied.