APPLICATION OF STATISTICAL METHODS IN ANALYSIS OF AGRICULTURE - CORRELATION AND REGRESSION ANALYSIS

The understanding and proper use of statistics is an integral part of everyday business environment. Statistics is a scientific discipline that deals with the collection, analysis and interpretation of the data of the observed phenomena, and it is usually associated with a numerical indicator. As a scientific discipline, it can be divided into descriptive and inferential statistics. Descriptive statistics describes the statistical data, and within it, the most commonly applied time series and graphs. Inferential statistics includes statistical methods to test hypotheses, determines the relationship between variables and predicts trends of the observed phenomena. This paper analyses statistical methods, and special emphasis in this paper is given to the correlation and regression analysis (multiple regressions). The paper has two objectives. The first is to use statistical methods and statistical analysis, to determine the relationship between selected independent variables and the dependent variable (the value of agricultural production). Another aim of the paper is that using Chow tests the significance of individual factors on agricultural production is tested, by looking at two groups of countries.