A Report

On
Multiple Regression Analysis on Income

Course Title: Applied Statistics

Course Code: F-207

Submitted To:
Md. Imran Hossain
Assistant Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Submitted By:
Group: 08
Section: A

Batch: 22nd

Date of Submission: December 13, 2017

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 Group Profile

Serial Name ID Remarks

1 Zakia Sultana 22-046

2 Md. Nurul Amin Khan Riyad 22-094

3 Kazi Luthfanuzzaman 22-103

4 Nipa Akter 22-124

5 Jannatunnaim Taney 22-127

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 Letter of Transmittal
December 13, 2017

Md. Imran Hossain

Assistant Professor

Department of Finance
Faculty of Business Studies
University of Dhaka.

Subject: Submission of the report on “Multiple regression analysis on Students’

Income”.

Dear Sir,
We consider ourselves very fortunate to have the opportunity to prepare report under your
valuable guidance. Working for this report has been both a pleasure and challenge to us.
We can never repay our indebtedness to you.

Your suggestion of the topic of our report “Relationship between the income of several
student’s families and other expenditures dependent on Income” was very appropriate.
This study, under your constant guidance, enabled us to gain new insights about both
theoretical and practical knowledge.

We would like to express our sincere appreciation and gratitude to you for your help in the
preparation of this report.

Sincerely yours
………………
Zakia Sultana
ID: 22-046
Department of Finance
University of Dhaka.

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 Executive Summary

In this report we have analyzed the relationship of income, family members, expenditures
and savings. Here the independent variables are income, family members and savings
whereas the dependent variable is the expenditures on food.

We begin by calculating the correlation matrix. It shows the relationship between each of
the independent variables and the dependent variable. It helps to identify the independent
variable that are closely related to the dependent variable. The correlation matrix also
reveals the independent variables that are highly correlated and positively redundant.

The independent variables are positively correlated with savings. The value of the expense
on food has the strongest correlation with income. Our standard is to look for correlation
that exceeded an absolute value of .700. None of the independent variables are correlated
with each other this indicates that multicolinearity is not likely. The final assumption refers
to multicolinearity. This means that the independent variables should not be highly
correlated. We suggested a rule of thumb that multicolinearity would be a concerned if the
correlation among independent variables are close to 0.7 or -0.7. There's no violations of
this guideline. There is a statistic that is used to move precisely evaluate multicolinearity,
the variance inflation factor (VIF). To calculate the VIFs we need to do a regression
analysis for each independent variable as a function of the other independent variable.
From each of these regression analyses we need the r-square to compute the VIF using
formula. If the VIFs are less than 10 then multicolinearity is not a concern. In this case The
VIFs are all less than 10.So, multicolinearity is not a concern.

We hope this report will be helpful for the future of the firm who are responsible for taking
decisions and making plans for future. It will also help the students to understand their
income and savings pattern and to make the best out of their income.

In the suggestion part we have tried our best to give some advice based on their problems
that we found from the analysis. In Conclusion, this report will depict a clear picture

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 Acknowledgement

A report is a very important and essential means for acquiring practical knowledge because the
knowledge of a student does not get fulfilled until he acquires knowledge theoretically and
practically. At the very beginning, we obviously express our deepest thanks and appreciation
to my honorable faculty Md. Imran Hossain, Assistant Professor of Department of Finance for
giving his valuable time, guidelines and advice in preparation of our report.

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