ASSIGNMENT

Course: BUS 511

Business Statistics
Section: 2

Submitted To:
Mohammad Arman, Ph.D.
Assistant Professor
Dept. of Accounting & Finance
School of Business and Economics
North South University

Submitted By:

Name ID
NASIMUL ALAM SHAURAV BHUIYAN 153-1101-660

Date of Submission: 13 December 2015

Background of the study
Statistics can interpret aggregates of data too large to be intelligible by ordinary
observation because such data (unlike individual quantities) tend to behave in regular,
predictable manner. We are taking the dependent variable as “Monthly Cell Phone Bill”.
Then from the T-stat we removed the independent variables. So, based on our
calculations we have got 8 variables out of 56 variables.

Scope of the study

How monthly cell bill is affected by various independent variables.

Purposes of study

 To prepare statistical model

 To forecast average cell phone bill

Literature Review
Mobile phones first arrived in the year 1946 and it has become a major
technology of modern society in the developing world. The price of the mobile phones
bill is affected by several factors, including the phone company fees, and usage of the
phone, and other products and services to which a mobile company customer
subscribes. A mobile bill costs vary greatly depending on the area in which a person
lives, and the types of services they use, and how often the phone is used.

Methodology

In this paper we have used linear regression model to find out the relationship
between Monthly Cell Phone Bill with respect to the given independent variables. Linear
regression model tries to model the relationship between two variables, matching a
linear equation to the perceived data. One variable is to be considered as a dependent
variable, and the second is considered as an independent variable. Here the dependent
variable is Monthly Cell Phone Bill and the result will shows how it depends on some
important variables.
Data Analysis
Variable Description
Number Variable Description
01 Age One's age in years

02 Household size Number of people live in one's home

03 Shoes Pair Number of pair of shoes one has

04 ActiveSIM1 1 if one has 1 SIM, 0 otherwise

05 DailyPocketExp500more 1 if one's daily out-of-pocket expenditure is more than

500tk, 0 otherwise

06 FavCoffee 1 if one like coffee, 0 otherwise

07 Fav Tea Coffee 1 if one like Tea,0 Coffee

08 Fav Drink Coke Pep 1 if one like Coke,0 Pepsi

Descriptive Statistics

Descriptive Statistics
N Minim Maxim Mean Std.
um um Deviation
Age 134 20 58 28.39 8.359
Household size 132 2 22 4.73 2.536
Shoes Pair 134 1 60 8.85 9.310
ActiveSIM1 134 0 1 .34 .477
DailyPocketExp500m 134 0 1 .21 .408
ore
FavCoffee 134 0 1 .22 .418
Fav Tea Coffee 134 0 1 .34 .477

Fav Drink _Coke Pep 134 0 1 .18 .385

Valid N (list wise) 132
Model Specifications:

Variables Coefficients Standard Error t Stat P-value

Intercept -862.435 320.39 -2.69 0.08
Age 38.318 8.83 4.34 0.00

Household size 90.55 26.54 3.141 0.01

Shoes Pair 30.83 7.43 4.14 0.00
ActiveSIM1 -313.49 143.68 -2.18 0.03
DailyPocketExp500more 457.31 181.95 2.51 0.01
FavCoffee 716.47 174.24 4.11 0.00
Fav Tea Coffee 611.50 153.89 3.97 0.00
Fav Drink CokePep -409.36 178.33 -2.29 0.23

Model Summary

Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .666a .443 .407 757.555
a. Predictors: (Constant), FavDrink_CokePep, FavCoffee, Shoes
Pair, ActiveSIM1, Household size, Age, FavTeaCoffee,
DailyPocketExp500more
b. Dependent Variable: Monthly Cell Bill

Conclusion
Finally from the whole report we can only say that, we could not do it in the proper way
because of all data are inclusive. They were selective bias. We used only multi-linear
regression to find out the results. A number of variables could have included such as:
cell phone service provider can depends on perhaps marital status, the longer the
persons weight the more average cell bill, etc.

We got to learn so many things from this project. The best part is in this project that we
can apply our findings that we have gathered throughout this semester. And we hope
that in our life we could use this kind of experience and develop our statistical skills in
our professional life,
APPENDIX
T-test

One-Sample Statistics
N Mean Std. Std. Error
Deviation Mean
MonthlyCellBil 134 1203.73 981.686 84.805
l
Age 134 28.39 8.359 .722

One-Sample Test
Test Value = 0
t df Sig. (2-tailed) Mean 95% Confidence Interval of the
Difference Difference
Lower Upper
MonthlyCellBil 14.194 133 .000 1203.731 1035.99 1371.47
l
Age 39.311 133 .000 28.388 26.96 29.82

Ho=Age affects the monthly cell bill, H1=Age does not affect the monthly cell bill
Here we see that that p< 0.05, which is 0.00<0.05 so, we reject the null hypothesis. We can say
that age does not affect the monthly cell bill.

Four Major Assumptions of Linear Regression Model:

1. Linearity and additives: Relationship between dependent and independent variable.
2. Statistical independence of error: No Correlation between consecutive errors in the case
of time series data.
3. Constant variance of errors (homoscedasticity): No pattern of weight residual plot this is
good.
4. Normality: Of the error distribution, non-linear relationships between dependent and
independent variables.
Histogram

This histogram shows that the distributions of the error terms are not normal as it does
not falls under the graph. So, we cannot call this normal distribution. But it’s very close
to the normal distribution as there are not very much outside data of the bell shape
curve.
Confidence Intervals

We have shown the models variables range on 3 different level of confidence, by the
upper and lower limit.

Variables Coefficients L 90.0% U 90.0% L 95% U 95% L 99.0% U 99.0%

Age 38.318 23.68 52.9 20.84 55.8 15.22 61.41

Household size 90.55 46.6 134.53 38.01 143.1 21.11 159.9

Shoes Pair 30.83 18.51 43.14 16.11 45.5 11.4 50.27

ActiveSIM1 -313.5 -551.6 -75.37 -597.90 -29.1 -689.41 60.42

DailyPocketExp500more 457.31 155.76 758.86 97.16 817.5 -18.73 933.35

FavCoffee 716.47 427.7 1005.25 371.56 1061.4 260.58 1172.4

FavTeaCoffee 611.5 356.52 866.5 306.96 916.03 208.9 1014.03

FavDrink_CokePep -409.39 -704.9 -113.8 -762.35 -56.4 -875.9 57.21

For example at 90% level of confidence the coefficient value of Age will lie between
23.68≤ 38.32≤52.9

For example at 95% level of confidence the coefficient value of Age will lie between
20.84 ≤ 38.32≤ 55.8
For example at 99% level of confidence the coefficient value of Age will lie between
15.22≤ 38.32≤ 61.41
Regression Statistics

Regression Statistics

Multiple R 0.67

R Square 0.44

Adjusted R Square 0.41

Standard Error 757.55

Observations 132

ANOVA

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 56253185.139 8 7031648.142 12.253 .000a

Residual 70588405.770 123 573889.478

Total 1.268E8 131

a. Predictors: (Constant), FavDrink_CokePep, FavCoffee, Shoes_Pair, ActiveSIM1, Household

size, Age, FavTeaCoffee, DailyPocketExp500more
b. Dependent Variable: MonthlyCellBill
 Regression Equation

Coefficients
Model Unstandardized Coefficients Standardized t Sig. 95.0% Confidence Interval
Coefficients for B
B Std. Error Beta Lower Bound Upper
Bound
1 (Constant) -862.435 320.383 -2.692 .008 -1496.614 -228.256
Age 38.318 8.828 .326 4.340 .000 20.843 55.793
Household size 90.549 26.540 .233 3.412 .001 38.015 143.084
Shoes_Pair 30.827 7.432 .294 4.148 .000 16.115 45.538
ActiveSIM1 -313.499 143.679 -.152 -2.182 .031 -597.902 -29.095
DailyPocketExp500mor 457.313 181.947 .191 2.513 .013 97.160 817.467
e
FavCoffee 716.473 174.245 .306 4.112 .000 371.566 1061.381
FavTeaCoffee 611.500 153.849 .296 3.975 .000 306.964 916.035
FavDrink_CokePep -409.360 178.328 -.158 -2.296 .023 -762.350 -56.369
a. Dependent Variable: MonthlyCellBill

Monthly cell bill= -862.43 + 38.32 * Age + 90.55 * Household size + 30.83 * Shoes Pair
+
t=-2.69 t=4.34 t=3.41 t=4.15
[-313.50] * Active SIM1 + 457.31 * Daily Pocket Exp 500 more + 716.47 * Fav
Coffee+611.50*FavTeaCoffee+ [-406.36]*FavDrink_CokePep
t=-2.18 t=2.51 t=4.11 t=3.98 t=-2.3

Adjusted R square is 0.407 or 41%. It shows that 41% of the variability of monthly cell
bill is explained by this model.
BIBLIOGRAPHY
 Linear Regression. (n.d.). Retrieved from http://www.stat.yale.edu/Courses/1997-
98/101/linreg.htm

 Lum, T. (2011, January 01). Mobile goes global: The effect of cell phones. Retrieved from
http://digitalcommons.bucknell.edu/cgi/viewcontent.cgi?article=1003&context=honors_theses

 What Factors Affect the Price of a Phone Bill? (2015). Retrieved from wiseGEEK:
http://www.wisegeek.com/what-factors-affect-the-price-of-a-phone-bill.htm