This week we started new Chapter 11 which is concerned with the relationship between two variables (usually, one independent and the other dependent).
We talked about covariance (not too useful by itself) and correlation coefficient (more useful).
We then moved on to a discussion of simple linear regression where the objective is to see if an independent variable (i.e., the student population in the example) can be used to estimate the value of the dependent variable (i.e., the monthly sales in the example). We calculated the regression equation's coefficients and performed an hypothesis test to see if the model was "significant."
We will complete our discussion of this chapter in the final week by learning about the coefficient of determination (r squared).
