Ans (i) :

The regression model for the above problem could be stated as under :

Y= β0 +β1 X+ ε

Where,

The dependant variable Y=Business

X=Advertisement & Publicity Expenditure
β0=Intercept
β1=Slope
ε = error term

Ans (ii) :

Results of ICICI Bank :

We consider the following hypothesis :

H0: There exists a influence on business by Advertisement & Publicity Expenditure

(The null hypothesis)

H1 : No significant change on business by Advertisement & Publicity Expenditure

(The alternative hypothesis)

Using the t stat value for testing of significance, we get :

Calculated t stat value= 0.3534488202

Tabulated value of t stat at (n-1),i.e, 5 degreees of freedom at 95% significance = 2.571

Since the calculated value of tstat is less than the table value of tstat, it shows that the provided regression model is significant.
We now accept the null hypothesis, i.e,
There exists a influence on business by Advertisement & Publicity Expenditure

Now, the results of HDFC Bank:

We consider the following hypothesis :

H0: There exists a influence on business by Advertisement & Publicity Expenditure

(The null hypothesis)

H1 : No significant change on business by Advertisement & Publicity Expenditure

(The alternative hypothesis)

Using the t stat value for testing of significance, we get :

Calculated t stat value= 2.460347159

Tabulated value of t stat at (n-1),i.e, 5 degreees of freedom at 95% significance = 2.571

Since the calculated value of tstat is less than the table value of tstat, it shows that the provided regression model is significant.
We now accept the null hypothesis, i.e,
There exists a influence on business by Advertisement & Publicity Expenditure

Ans (iii) :

As per the scatter diagram & the tstat value, we come to conclusion that the results of icici bank is more strenghtened than compared to HDFC.
The scatter diagram of ICICI bank results shows a more strong correlation where as the low value of tstat 0.353 as compared to 2.46 of HDFC establishes th
Also, the p value of the results of icici bank is higher than that of HDFC & the standard error estimates value is very low as compared to the corresponding va

Ans (iv) :

ICICI BANK :

The required regression equation for estimation as per the calculated values is as follows :

Y=79548.6+483.75X

132.48

Assuming a growth of 20% in expenditure, the Value X will become= 132.48+.20*132.48= 158.976

Therefore the estimated business growth(Y) = 79548.6+483.75*158.976=

156453.24 Approx

HDFC BANK :

The required regression equation for estimation as per the calculated values is as follows :

Y=130835.7+1082.426X

Total Advertisement & Publicity Expenditure in 2011-12= 154.83

Assuming a growth of 20% in expenditure, the Value X will become= 154.83+0.20*154.83= 185.796

Therefore the estimated business growth(Y) = 130835+1082.426*185.796

331945.42 Approx
 Regression Analysis Output for ICICI BANK :

Business(Y) Advertisement & Publicity Expenditure(X)

426375.78 217.74
470047.13 207.86
436658.67 140.28
383222.2 110.8
441968.01 148.75
509227.62 132.48

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.1740277286
R Square 0.03028565032
Adjusted R Square -0.2121429371
Standard Error 46693.82886
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 272378012.9
272378012.9
0.1249260685
0.7415936786
Residual 4 8721254614
2180313653
Total 5 8993632627

Coefficients Standard Error t Stat P-value Lower 95%Upper 95%

Intercept 417286.1047 79548.601285.245674945
0.006315781113
196423.78 638148.4293
X Variable 1 170.9793006 483.7455690.3534488202
0.7415936786
-1172.113716
1514.072318
 Regression Analysis Output for HDFC BANK :

Business(Y) Advertisement & Publicity Expenditure(X)

115242.72 74.88
164195.5 114.73
241694.63 108.68
293235.03 83.12
368569.08 161.86
442126.48 154.83

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.7759645732
R Square 0.6021210189
Adjusted R Square
0.5026512736
Standard Error86846.14019
Observations 6

ANOVA
df SS MS F Significance F
Regression 1 45655575835
45655575835
6.053308141
0.06966542986
Residual 4 30169008267
7542252067
Total 5 75824584102

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0%
Intercept -39012.75081130835.7005
-0.2981812355
0.7804121244
-402270.891
324245.3893
-402270.891
324245.3893
X Variable 1 2663.142737 1082.425595
2.460347159
0.06966542986
-342.1525078
5668.437982
-342.1525078
5668.437982