BUSINESS ANALYTICS

ASSIGNMENT

BHARATIYA VIDYA BHAVAN’S USHA AND LAXMI MITTAL

INSTITUTE OF MANAGEMENT, DELHI

IN PARTIAL FULLFILLMENT OF
PGDM 2019 – 21
(TERM – 3)

GUIDED BY: SUBMITTED BY:

DR. ALOK AGRAWAL NIKUNJ PRAVIN HEDA
ASSISTANT PROFESSOR ROLL NO. 048
SECTION A
QUESTIONS
1-The Excel file Energy Production & Consumption provides data on production,
imports, exports, and consumption. Develop line charts for each variable and identify
key characteristics of the time series (e.g., trends or cycles). Are any of these time series
stationary? In forecasting the future, discuss whether all or only a portion of the data
should be used. Discuss your analysis on the data using visualization. (10)
2-Using the data in the Excel file Weddings construct scatter charts to determine
whether any linear relationship appears to exist between (1) the wedding cost and
attendance, (2) the wedding cost and the value rating, and (3) the couple’s income and
wedding cost only for the weddings paid for by the bride and groom. Then find the best-
fitting linear regression lines using the Excel Trendline tool for each of these charts. (10)
SOLUTIONS
Solution 1.
LINE CHARTS

 A line chart is a graphical representation of an asset's historical price action that

connects a series of data points with a continuous line.
 This is the most basic type of chart used in finance and typically only depicts a
security's closing prices over time.
Below is the graphical representation of all the given data:
A. Fossil Fuels (Production)

Fossil Fuels
70
60
50
40
30
20
10
0
ar 52 56 60 64 68 72 76 80 84 88 92 96 00 04 08 12
Ye 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend i.e. Repeating up and down
swings or movements through four phases: from peak (prosperity) to contractions (recession)
to trough (depression) to expansion (recovery or growth) Interactions of the numerous factors
that influence the economy usually 2-10 years with differing intensity for the cycles.

B. Primary Energy (Production)

 Primary Energy
90
80
70
60
50
40
30
20
10
0
ar 52 56 60 64 68 72 76 80 84 88 92 96 00 04 08 12
Ye 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

C. Primary Energy (Imports)

Primary Energy Imports

40
35
30
25
20
15
10
5
0
ar 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 11
Ye 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

D. Primary Energy (Exports)

Primary Energy Exports

12
10
8
6
4
2
0
ar 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 11
Ye 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

E. Fossil Fuels (Consumption)

 Fossil Fuels
100
80
60
40
20
0
ar 52 56 60 64 68 72 76 80 84 88 92 96 00 04 08 12
Ye 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

F. Total Energy (Consumption)

Total Energy
120
100
80
60
40
20
0
ar 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 11
Ye 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

G. Nuclear Electric Power (Consumption)

Nuclear Electric
9
8
7
6
5
4
3
2
1
0
ar 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 11
Ye 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20

Key Characteristic: The graph is showing a Cyclical Trend

In forecasting the future using a portion of the data,
FOSSIL FUELS
Using some of the data (2001 – 2002)

Using whole data

PRIMARY ENERGY (Production)

Using the same of the data (1994 – 2012)

Using the whole of the data

PRIMARY ENERGY (Imports)
Using some part of data (1996 – 2012)

Using the whole of data

PRIMARY ENERGY (Exports)

Using a part of the data (1990 – 2012)

Using the whole of the data

FOSSIL FUELS (Consumption)

Using a part of the data (1991 – 2012)

Using the whole data

TOTAL ENERGY (Consumption)
Using a part of the data (2001 – 2012)

Using the whole of the data

NUCLEAR ELECTRIC POWER (Consumption)

Using a part of the data (2001 – 2012)
Using the whole of the data

Solution 2.

LINEAR RELATIONSHIP

 A linear relationship is a statistical term used to describe a straight-line relationship

between a variable and a constant.
 Linear relationships can be expressed either in a graphical format where the variable
and the constant are connected via a straight line or in a mathematical format where
the independent variable is multiplied by the slope coefficient, added by a constant,
which determines the dependent variable.
 Positive correlation is a relationship between two variables in which both variables
move in tandem—that is, in the same direction. 
 Negative correlation or inverse correlation is a relationship between two variables
whereby they move in opposite directions
1. Wedding Cost and Attendance
The graph is showing Positive linear relation between variables wedding cost and
attendance.

Wedding Cost & Attendance

400
350
300
250
200
150
100
50
0
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00

2. Wedding Cost and Value Rating

Thee graph is showing no linear relation between the variables wedding cost & value
rating.

Wedding Cost & Value Rating

6

0
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 $70,000.00

3. Wedding Cost and Couple’s Income

The graph is showing Positive linear relation between the variables wedding cost and
couple’s income.
 Wedding Cost & Couple's Income
$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
$0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00

The best- fitting linear regression lines using the Excel Trendline tool for each of these charts
is also the ‘Linear regression line’. Linear regression attempts to model the relationship
between two variables by fitting a linear equation to observed data. One variable is
considered to be an explanatory variable, and the other is considered to be a dependent
variable.