ARSHAD AYUB GRADUATE BUSINESS SCHOOL (AAGBS)

EXECUTIVE MASTER IN BUSINESS ADMINISTRATION (AA701B)

ECONOMIC ANALYSIS
(ECO 740)

Prepared for:
Dr. Arlinah Binti Abd Rashid

Prepared by:
Wan Non Zarina bt Wan Abd Ghani
2015248528

Regression
Variables Entered/Removeda
Variables

Variables

Entered

Removed

Model

Method

I, P, Ad, Pxb

. Enter

a. Dependent Variable: Q
b. All requested variables entered.

Model Summary
Model

R Square
a

.951

Adjusted R

Std. Error of the

Square

Estimate

.904

.889

34.972

a. Predictors: (Constant), I, P, Ad, Px

ANOVAa
Model
1

Sum of Squares
Regression
Residual
Total

df

Mean Square

287947.269

71986.817

30575.531

25

1223.021

318522.800

29

Sig.

58.860

.000b

a. Dependent Variable: Q
b. Predictors: (Constant), I, P, Ad, Px

Coefficientsa
Standardized
Unstandardized Coefficients
Model
1

B
(Constant)

Std. Error

807.919

137.836

-5.034

.457

Px

4.860

Ad
I

Coefficients
Beta

Sig.

5.861

.000

-.688

-11.022

.000

1.006

.335

4.833

.000

.328

.104

.218

3.141

.004

.009

.001

.509

7.994

.000

a. Dependent Variable: Q

a. Write down regression model

Q- Dependent variable
P- price per case
Px-competitors price
Ad advertising
I- Household income
Q=807.919-5.034P+4.860Px+0.328Ad+0.009I
b Interpret the coefficient of determination for the regression model.
fr example ye.
.$1.00 increase will reduce expected sale by 5.03cases
.(coefficient Price variable is- 5.03)
c. Evaluate the coefficient of determination for the regression model.

Model Summary
Model
1

R Square
a

.951

Adjusted R

Std. Error of the

Square

Estimate

.904

.889

34.972

a. Predictors: (Constant), I, P, Ad, Px

The R2 = 90.4% obtained by the model means that 90.4% of demand variation is
explained by the variation of all four independent variables. The remaining 9.6% is due to
factors not included in the model. The model has high explanatory power which indicates
a good model.

d. Which of the independent variables (if any) appears to be statistically significant (at
the 0.05 level) in explaining demand for Branded Products, Inc?
t-test

e. Use the regression model estimation results to forecast weekly demand in five new
markets with the following characteristics.

find Q for each market.ada lima Q.

f. Would you feel that this regression line was adequate model to forecast demand for
Branded Products, Inc.? Why or why not?
yes. because of r, f-test and t-test .( sama jawapan ngn assignment demand
analysis..the last part)

g. As a business analyst for Branded Products, Inc. , what suggestions or strategies would
you propose to improve or maximize sales in Market C?
find all Elasticity and interpret yrself.