Correlation and regression model imtiaz ahmad 28/10/2015

Correlation and regression model

IMTIAZ AHMAD

OCTOBER 28, 2015

employ 0.5792 1.0000

income 1.0000

income employ

(obs=6400)

The correlation model shows moderate positive correlation between employees and income. That income has increase with the employment.

_cons 5.595362 .13218 42.33 0.000 5.336245 5.854479

income .0715495 .001259 56.83 0.000 .0690814 .0740175

employ Coef. Std. Err. t P>|t| [95% Conf. Interval]

Total 605121.91 6399 94.5650742 Root MSE = 7.928

Adj R-squared = 0.3354

Residual 402129.766 6398 62.8524173 R-squared = 0.3355

Model 202992.144 1 202992.144 Prob > F = 0.0000

F( 1, 6398) = 3229.66

Source SS df MS Number of obs = 6400

P-value (0.000) of F (3229.66) show that regression model is significant. The R squared value show that there is 33.55 variation between employment and income.

0500

1000

0 20 40 60employ

employe income

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Calculation of CI = point estimate + ME

dis .0715495+1.96*.001259 =.07401714 dis .0715495-1.96*.001259=.06908186

COMMANDS:

corr income employ

dis .0715495+1.96*.001259

dis .0715495-1.96*.001259

import excel "C:\Users\KINGAFRIDI\Downloads\Desktop\demo.xlsx", sheet("demo") firstrow

regress employ income

scatter income employ

twoway (lfit income employ) (scatter income employ)

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