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    Anindit Borkotoky
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    Multiple regression analysis is used to model the relationship between a dependent variable (y) and multiple independent variables. The document discusses calculating a consumer price index (CPI), which measures inflation by tracking price changes of consumer goods weighted according to household consumption. CPI is calculated for individual items and aggregated using weights based on spending habits. Factors that influenced Bulgaria's high CPI are discussed, including economic collapse, trade deficits, and an unstable banking system. The analysis found Bulgarian CPI to be highly correlated with interest rates and debt levels.

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    Multiple regression analysis is used to model the relationship between a dependent variable (y) and multiple independent variables. The document discusses calculating a consumer price index (CPI), which measures inflation by tracking price changes of consumer goods weighted according to household consumption. CPI is calculated for individual items and aggregated using weights based on spending habits. Factors that influenced Bulgaria's high CPI are discussed, including economic collapse, trade deficits, and an unstable banking system. The analysis found Bulgarian CPI to be highly correlated with interest rates and debt levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    6 views7 pages

    Presentation 1

    Uploaded by

    Anindit Borkotoky
    Multiple regression analysis is used to model the relationship between a dependent variable (y) and multiple independent variables. The document discusses calculating a consumer price index (CPI), which measures inflation by tracking price changes of consumer goods weighted according to household consumption. CPI is calculated for individual items and aggregated using weights based on spending habits. Factors that influenced Bulgaria's high CPI are discussed, including economic collapse, trade deficits, and an unstable banking system. The analysis found Bulgarian CPI to be highly correlated with interest rates and debt levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    MULTIPLE REGRESSION

    y By: y Anindit y Himakshi y Ritika y Vinesh

    Consumer price index


    A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households The annual percentage change in a CPI is used as a measure of inflation

    y Calculating the CPI for a single item y Cpi 1/cpi 2 = price 1 /price 2 y Where 1 is usually the comparison year and CPI1 is

    usually an index of 100. Calculating the CPI for multiple items Cpi=sum of cpi of all the years * weight y Example: The prices of 95,000 items from 22,000 stores, and 35,000 rental units are added together and averaged. They are weighted this way: Housing: 41.4%, Food and Beverage: 17.4%, Transport: 17.0%, Medical Care: 6.9%, Other: 6.9%, Apparel: 6.0%, Entertainment: 4.4%. Taxes (43%) are not included in CPI computation.

    The trend

    BULGARIAN CPI
    y The causes : y Collapse of the economic system y Loss of soviet market y Unstable and decentralized banking system y Trade deficit , improper real estate investment

    Why ???
    Lag variables
    Independent variables: interest and debt

    Basic findings :
    y The high correlation among the bulgarian consumer

    price index and the interest and debt

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