Escolar Documentos
Profissional Documentos
Cultura Documentos
PGDM (2015-17)
Term:
Term 1
Course Name:
Managerical Economics
Dr. V. J. Sebastian
Topic/ Title :
Group Number:
10
Group Members:
Sl.
Roll No.
Name
1
2
3
4
5
6
7
150103149
150103062
150101079
150102019
150102089
150102099
150103180
Sandip Ghosh
Faraz Zeeshan
Nitish Agarwal
Ankur Tripathi
Shipra
Suman Gon
Sumedha Anand
Regression Analysis
Regression Analysis is an econometric tool to study the effect of certain
specified dependent variables on a specified independent variable.
There are 2 types of regression models;
Bi-variate :
Y = +X+e
Regression
Variables Entered/Removeda
Mode
l
Variables
Entered
Variables
Removed
Method
Exports
(Rs.
Crores),
CPI-IWb
. Enter
Model Summary
Mode
l
1
R
.999a
R
Adjusted R
Square
Square
.998
.998
1422.792
Sum of
Squares
df
Mean
Square
4225.8
31
Regressi
on
17109024
973.235
85545124
86.618
Residual
36438089.
432
18
2024338.3
02
17145463
062.667
20
Total
Sig.
.000b
Coefficientsa
Model
Unstandardized
Coefficients
Std. Error
Standardiz
ed
Coefficient
s
Beta
Sig.
2356.688
9629.601
(Constant)
1
CPI-IW
-4.086
.001
260.375
32.418
.452
8.032
.000
.029
.003
.552
9.812
.000
Exports (Rs.
Crores)
.999a
R
Adjusted R
Square
Square
.998
Std. Error
of the
Estimate
.998
Durbin-Watson
1422.792
.884
Sum of
Squares
df
Mean
Square
4225.8
31
Regressi
on
17109024
973.235
85545124
86.618
Residual
36438089.
432
18
2024338.3
02
17145463
062.667
20
Total
Coefficientsa
Sig.
.000b
Model
Unstandardized
Coefficients
Std. Error
CPI-IW
Sig.
Beta
2356.688
9629.601
(Constant)
1
Standardiz
ed
Coefficient
s
-4.086
.001
260.375
32.418
.452
8.032
.000
.029
.003
.552
9.812
.000
Exports (Rs.
Crores)
Residuals Statisticsa
Minimu
m
Maximu
m
Mean
Std.
Deviation
Predicted
Value
6986.34
107395.
83
38155.
29248.098
33
Residual
3609.78
2667.82
6
8
21
.000
1349.779
21
Std. Predicted
Value
-1.066
2.367
.000
1.000
21
Std. Residual
-1.875
2.537
.000
.949
21
Variables
Entered
Variables
Removed
Method
Exports
(Rs.
Crores),
CPI-IWb
. Enter
.999a
R
Adjusted R
Square
Square
.998
Std. Error
of the
Estimate
.998
DurbinWatson
1422.792
.884
ANOVAa
Model
Sum of
Squares
df
Mean
Square
4225.8
31
Regressi
on
17109024
973.235
85545124
86.618
Residual
36438089.
432
18
2024338.3
02
17145463
062.667
20
Total
Sig.
.000b
Coefficientsa
Model
Unstandardized
Coefficients
Std. Error
CPI-IW
Sig.
Beta
2356.688
9629.601
(Constant)
1
Standardiz
ed
Coefficient
s
-4.086
.001
260.375
32.418
.452
8.032
.000
.029
.003
.552
9.812
.000
Exports (Rs.
Crores)
Model
Collinearity Statistics
Tolerance
VIF
(Constant)
1
CPI-IW
.037
26.793
.037
26.793
Eigenval
ue
Condition
Index
Variance Proportions
(Consta
nt)
CPI-IW
Exports (Rs.
Crores)
2.713
1.000
.00
.00
.00
.284
3.093
.03
.00
.03
.003
28.341
.97
1.00
.97
Maximu
m
Mean
Std.
Deviation
Predicted
Value
6986.34
107395.
83
38155.
29248.098
33
Residual
3609.78
2667.82
6
8
21
.000
1349.779
21
Std. Predicted
Value
-1.066
2.367
.000
1.000
21
Std. Residual
-1.875
2.537
.000
.949
21
Theoretical Explanation:
2 When a country exports goods, it sells them to a foreign market,
that is, to consumers, businesses, or governments in another
country. Those exports bring money into the country, which
increases the exporting nation's GDP. When a country imports
goods, it buys them from foreign producers. The money spent on
imports leaves the economy, and that decreases the importing
nation's GDP.
3 Net exports can be either positive or negative. When exports are
greater than imports, net exports are positive. When exports are
lower than imports, net exports are negative. If a nation exports,
say, $100 billion dollars worth of goods and imports $80 billion, it
has net exports of $20 billion. That amount gets added to the
country's GDP. If a nation exports $80 billion of goods and imports
$100 billion, it has net exports of minus $20 billion, and that amount
is subtracted from the nation's GDP.
The Consumer Price Index for Industrial Workers (CPI-IW) is an economic
indicator used by the government in India to track inflation for a particular
segment of the consumer market. It does this by establishing a baseline for
the purchasing power of industrial workers at a particular point in time and
comparing what the same amount of money can purchase in later years. If
purchasing power decreases, inflation has caused the prices of consumer
goods to rise. The percentage increase in prices over the baseline is
considered the country's rate of inflation.
So if CPI-IW increases, it shows an overall increase in the price level of the
consumer market of the industrial workers. Since GDP is defined as the total
value of all the goods and services produced during a particular period of
time, the increase in price level leads to an increase in the value of the goods
produced which consequently escalates the GDP.
Analysis :
F-test :
It tests the statistical fit of the regression equation . In other words, it
tests the hypothesis that all the coefficients are simultaneously
insignificant.
Here, the F value is 4225.831 which is much more than 4. Thus, the
statistical fit of the equation is very good and all the variables are not
simultaneously insignificant.
Also, the sig value for F is .000 which is less than .05 and hence we reject
the null hypothesis that all the variables are simultaneously insignificant.