Multiple Regression Model

DAVESH AGARWAL
KIRTI KHATTAR
SWAYAM NANDA
VISHAL SACHAN
 Defining the problem

To determine the relation between BSE with NSE, NASDAQ, NIKKIE and DOW JONES
 First variable is taken as NSE because it shows the impact on India.

 Second variable is taken as NASDAQ because it shows the impact on United States
with respect with BSE as United States is one the top developed countries in the world.
 
 Third variable is taken as NIKKIE because it shows the impact on Japan as it is one
of the developed country of Asia.
 
 
 Fourth variable is taken as DOW JONES because it is one of the oldest stock
exchange with the formulation of highest number of companies it shows the impact on
United Kingdom.
 Population Frame

 We have taken the sample of 30 days of different stock exchanges i.e. 2 nd of

Nov to 10th of Dec. we have taken this particular time because at this time
there was a recession and there is a high fluctuations in the every stock
exchange whether developed or developing. The sample was taken from the
help of internet, newspaper and different magazines.

 The area of sampling are selected on the basis that the stock exchanges
which are been taken are one of the most important stock exchanges of the
world. It consist the data of 3 developed countries in which one is of Asia and
others are top countries with respect to their economy.

 The reason why we have taken these stock exchanges because it consists of
mainly 60% - 65% companies in all over the world.
 Formula Used

 As we are doing multiple regression analysis the formula which is been

used is
 Y=ßo + ß1x1 + ß2x2 + ……+ ßkxk + €
 
 This is a general linear model the parameters (ßi) are linear, where the
variable y is dependent.
 Result

Multiple R 0.975461
R Square 0.951524
Adjusted R Square 0.943768
Standard Error 132.3681
Observations 30
 Sampling technique

 
Convenient sampling and sequential sampling
technique was adopted at the time of the collection
of the data because we can take any period of the
year but due to factors like recession this period
will be appropriate for the comparison.
 Conclusion

Through this regression analysis we came to draw a

conclusion that the BSE sensex is much related
with NSE, then it comes NIKKIE and then with
NASDAQ and DU JONES.