Adeva, Maria Kathreena Andrea H.

BSA 2-11

STATISTICAL ANALYSIS with SOFTWARE APPLICATION

ASSESSMENT NO. 6

1. Data collected is presented in Table 1. What factors affect profitability in that

industry?
Factor/Predictor
R Square P-value Interpretation

Number of employees 0.682 p ˂ 0.001 Significant

Consecutive dividends 0.470 p ˂ 0.001 Significant
Beginning inventory 0.707 p ˂ 0.001 Significant
Number of employees and
consecutive dividends 0.712 p ˂ 0.001 Significant
Number of employees and beginning
inventory 0.800 p ˂ 0.001 Significant
Consecutive dividends and
beginning inventory 0.737 p ˂ 0.001 Significant
Number of employees, consecutive
dividends, and beginning inventory 0.805 p ˂ 0.001 Significant

The findings show strong and positive relationships among number of employees,
consecutive dividends, and beginning inventory with respect to its profitability. Through
the use of multiple regression analysis, it was determined that the three independent
variables (number of employees, consecutive dividends, and beginning inventory) has
significantly affect the profitability (𝑅 2 = 0.805; 𝑝 < 0.001). The value of 𝑅 2 indicates
that approximately 80.5% of the variance of gross profit in the sample can be accounted
for the combination of number of employees, consecutive dividends, and beginning
inventory. In terms of individual predictor, all of the three were found significant. Meaning,
as number of employee increases, profit increases (𝑅 2 = 0.682; 𝑝 < 0.001). Same in the
case of beginning inventory whereas a good beginning inventory will result to a great
profit(𝑅 2 = 0.707; 𝑝 < 0.001). Furthermore, if we’ll make use of the combination of
number of employees and consecutive dividends, number of employees and beginning
inventory, and consecutive dividends and beginning inventory, it will also give the same
interpretation whereas the three mentioned combinations were a significant factor of gross
profit.