Final answer:
To assess the bivariate relationship between a Factor predictor variable and a Continuous target variable, analyze the independent and dependent variables, create a scatter plot, calculate the line of best fit and correlation coefficient, and determine the significance and potential linearity of the relationship.
Step-by-step explanation:
When assessing the bivariate relationship between a Factor predictor variable and a Continuous target variable, one should examine several aspects:
- Independent and dependent variables - First, decide which variable will be the independent variable and which will be the dependent variable. The independent variable is the one you believe might influence the other variable, while the dependent variable is the one you think might be influenced.
- Draw a scatter plot to visually inspect the relationship between the two variables. A scatter plot can provide a quick visual assessment of whether there is a potential linear relationship.
- Use regression analysis to find the line of best fit and calculate the correlation coefficient. The line of best fit is described by the equation ý = a + bx, where 'a' is the y-intercept and 'b' is the slope.
- Interpret the significance of the correlation coefficient. A high absolute value of the correlation coefficient indicates a strong relationship between the independent and dependent variable. Statistical tests can be applied to determine if the correlation is significant.
- Examine whether there appears to be a linear relationship between the variables. If the points on the scatter plot follow a straight line, this suggests a linear relationship.
By carefully considering these aspects, one can form a better understanding of the nature and strength of the relationship between the two variables in question.