Introduction

In this topic, we will be considering two related types of analyses: Correlation and Simple Linear Regression. These techniques can be used to describe the relationship between two numeric variables. For example, you may recall in Topic 2 that we considered the relationship between income per person (GDP per capita, PPP$ inflation-adjusted) and the Happiness Index (Gapminder.org 2021). We will again consider the relationship between these two variables, but this time we will focus our analysis on countries whose GDP per capita is between $10,000 and $50,000, as depicted in the below scatter plot:

We will begin by considering the correlation between these two variables, followed by a simple linear regression analysis.

References

Gapminder.org. 2021. “Free Data from World Bank via Gapminder.org, CC-BY License.” 2021. https://www.gapminder.org/data/.
These notes have been prepared by Amanda J. Shaker. The copyright for the material in these notes resides with the author named above, with the Department of Mathematics and Statistics and with La Trobe University. Copyright in this work is vested in La Trobe University including all La Trobe University branding and naming. Unless otherwise stated, material within this work is licensed under a Creative Commons Attribution-Non Commercial-Non Derivatives License CC BY-NC-ND