Professional Documents
Culture Documents
[K.S.T.A]
BY
DASHE NUNGNAÁN FATE
2011/1/38185MT
1.0: INTRODUCTION
The space covered by the organization of cities, in developing countries, is highly marked. In
most areas facilities and services are well provided while they are inadequate or not provided in
others. And also, there is distinction in socio-economic characteristics of the populace from place
to place. However, the urban defenseless groups are located mostly either at the economic heart,
city centre or at the fringes, where there are no inhabitants. These differences provide the
challenge of getting equal and efficient urban services for the disadvantaged and vulnerable
groups. Consequently, Public transportation system provides the most efficient means of moving
large number of people especially in high populated urban centers. In addition to the wellbeing
of its users, public transport plays a vital role in the productivity of cities which in turns has a
direct bearing on the national economies (World Bank, 2001; Lyndon and Todd, 2006)
The importance of urban planning is to make available adequate and equitable services to all
groups. Transport services is very important any urban setting. Man, nations, regions and the
world would be severely limited in development without transportation, which is a key factor for
physical and economic growth (Oyesiku, 2002). Transportation systems and land use are
interdependent. Indeed findings of earlier studies indicate compelling and consistent connections
amongst them (Ewing and Cervero, 2001; Polzin, 2004). According to Bailey, Mokhtarian, and
Littlel (2008), transportation route is part of distinct development pattern or road network and
development and civilization. The road network coupled with increased transport investment
result in changed levels of accessibility reflected through Cost Benefit Analysis, savings in travel
time, and other benefits. These benefits are noticeable in increased catchment areas for services
and facilities like shops, schools, offices, banks, and leisure activities. Road networks are
density of particular roads and traffic density. Level of service is a measure by which the quality
considering several factors regarded as measures of traffic density and congestion rather than
Passenger/road transport has become one of the predominant modes of transport in Nigeria, aside
other modes. (http://www.gipc.org.wg). This mode of transport serves the vast majority of
Nigerians due to its cheap nature and also its easily accessible hence provide door to door
services. With a population growth in Nigeria of an average of 2% per annum in major cities,
reaching a size of 24 million (in 2011) and the organization has grown alongside. By this
development, there has been an emergence of small and medium size companies to satisfy the
In most developing countries the transport sector however has many problems in the urban
centers. Inadequate and inferior quality infrastructures, unsuitable demand and supply, and high
rate of accidents are some of the problems. These problems triggered by interrelated trends such
as urban population growth and (rapid, unplanned, and uncoordinated) growth of cities
(tranSafety 1998). The computation of (Dejong et al. 2002) in Dare s salaam shows for longer
distance clinics, patients increasingly use public transport over walking. In most developing
countries, public transports are mostly run under subsidies and low revenue.
The importance of public transport services in a successful transport system is widely recognized
whites (2002) defines public transport as all modes available to the public irrespective of
ownership. Nonetheless, existing transport throughput does not satisfy the demand in developing
countries. Hence, transport planners should provide a suitable framework within which the poor
and the less poor use the public transport with more pride and satisfaction (World Bank 2002b).
Due to the changing nature of businesses today coupled with increased customer demanding
nature and also alternative sources of goods and services, organizations try to migrate from
traditional marketing to modern marketing (Bose, 2002) therefore there is the need for
improvement for the organization in the provision of quality services to meet the satisfaction of
This paper evaluates the variables that tend to determine the operational performance of Kaduna
state transport authority (K.S.T.A) of Nigeria and it identifies the variables that are influencing
However, in order to keep and attract more passengers, the organization must have high service
quality to satisfy and fulfill more wide range of different customer’s needs. It is important to
have knowledge about the operational performance of the organization to understand what drives
customer satisfaction and dissatisfaction in other for the organization to design and attractive and
marketable and more profitable method of operation in its administration. This study will be
carried out in Kaduna municipal city, the administrative seat, of Kaduna State, Nigeria. The
selection of this state is based on the preponderance of the Transport Company in the area.
1.2: STATEMENT OF PROBLEM
Today, most world transport system is faced with the challenges of effective mode of operations
or customer relationship management. (Alguyen, et al, 2007) stated that one of the goals that
management has its employees achieve is based on the maxim such as “the customer is always
right” and “do whatever it takes to deliver your promise” or “something similar”.
The practice of neglecting or not recognizing the importance of time, quality of service, speed of
operation and congestion couple with increased work load on one route network has deteriorate
the transport infrastructure. Most public transport services in Nigeria are delivering poor service
quality, poor maintenance of fleet and unsafe service. Big share of the vehicle fleet operated in
the organization consists of secondhand vehicles purchased from industrialized countries ages of
the vehicles are quite old and there is a low maintenance budget. Reliability, convenience and
travel time are considered to have a great impact on the operational performance of any transport
system in relation with the type of the trip, but most transport companies do not take it seriously
The aim of most transport plan in any economy is the provision of affordable transportation
service, enhanced access and mobility. Public transport in the study area constitute of
conventional bus services provided by private individuals, mini buses and conventional taxis
operated by the private sectors and also buses exclusively for employees of large organizations
and schools. Due to limited extent of KSTA bus service, insufficiency of public bus route
network and deficiency of transport services in the city, people spend more time and money on
travel. Therefore, network and service deficiency under current physical, financial and
with the city transportation vision “affordable transport, enhanced access and mobility”.
1.3: OBJECTIVE OF THE STUDY
The overall aim of this research is to carry out a detail analysis of the current operational
performance of Kaduna State Transport Authority (K.S.T.A.) transport service efficiency and
2. To evaluate the quality level of service of the existing public bus service
3. To find out and identify the current bus route network deficiencies
To enable the research proffer solutions to the research problems, certain questions were
raised. It is also believed that if the right answers to the questions are obtained it would lead to
They are;
1. What are the factors influencing efficiency of public bus transport system?
2. What is the current status of the existing public bus service in terms of quality?
H0: There is no statistical relationship between the quality of service of KSTA and customer
satisfaction.
H1: There is statistical relationship between the quality of service of KSTA and customer
satisfaction
H0: There is negative significance in the quality level of service rendered by KSTA to
commuters.
H1: There is positive significance in the quality level of service rendered by KSTA to commuters.
1.6: JUSTIFICATION
This study is carried out for Kaduna state transport authority. The Kaduna state transport
authority KSTA, came into being in May 1978 under Edict No. 9 of 1978. The main purpose of
establishment was to plan, manage and operate bus passenger’s transportation at city, inter-city,
interstate and even at international levels. It is also to cater for the safety and comfort of
passengers at originating stations, enroutes and terminal stations. Since its inception, Kaduna
state transport authority has strived all these years to operate strictly under the provisions of the
Statistics has shown since the establishment of the organization, it solely operate on inter-state
level until recently with government involvement through SURE-P that the organization began to
subsidize and interfere in the state intercity transportation (2014 Journal published on the impact
of SURE-P). A greater percentageof transportation service of the state was originally provided by
private sectors through taxi and buses and the level of services of these buses and taxi are usually
expensive and very poor. Uncontrolled and rapid horizontal expansion, increasing population
and poor road infrastructure of the city (narrow road, limited network extent, no pedestrian
facility and lack of adequate traffic signs, etc.) dictate the level of service. Due to congested
traffic on one hand and poor performance of the operators on the other hand the transportation
headway is long therefore waiting time at terminals are usually very long. In view of the above,
there is need to assess performance of K.S.T.A. It is in the light of this study to examine the
The scope of this study includes, assessing the efficiency of the current operational
performance of the organization bus transport service using some efficiency parameters in
goals and focuses on the company daily operational activities, cost, revenue generated and the
complication encountered which correlate with the rate at which they satisfy their customer since
the commencement of Kaduna state transport authority (K.S.T.A) bus transport service.
The major limitation of this study is that it assumes KSTA is the only public transport
system in the study area; analyses and recommendations are based on this assumption. It does
not cover the competition, contribution and effect of service provided by taxi or private sector
and also, it does not cover a detailed analysis of investors into the organization, infrastructural
development of facilities since its establishment, and the study was limited to the activities in all
Kaduna State is a state in central northern Nigeria. Its capital is Kaduna. The state is the
successor to the old Northern Region of Nigeria, which had its capital at Kaduna. In 1967 this
was split up into six states, one of which was the North-Central State, whose name was changed
to Kaduna State in 1976. This was further divided in 1987, losing the area now part of Katsina
State.
It is generally believed that Zaria is one of the seven Hausa States of the early 15 th century and
among the largest. The other name for Zaria is Zazzau and the inhabitants are called Zage-zage
or Zazzagawa. Tradition has it that the name Zazzau is derived from a famous sword which was
honored in those days by the Zazzagawa and helped to give a kind of ethnic identity years before
the recognition of any king by Zaria people. There were sixty "Habe" (the name given to Hausa
people before the Fulani conquest of Hausa land in 1804) rulers (Kings and Queens) who rules
Zaria town. The most widely spoken language in the state is the Hausa and Gbari.
The cultural and religious festivals in the state include Durbar, Afan,Tuk-Ham, Eid-EL-Fitr, Eid-
There are a host of other ethnic groups within the state that have similar colorful festivals where
some boisterous theatrical performances are displayed which can also carry one to a sheer
exhilaration of fun. Amongst them are: The Ikulu Festival, known as Unum Akulu carried out
last Saturday of every year, The Akat Festival, The Sholio, The Baranzan, The Fantswam, The
Angham, At yap, Tsam, and also the Gbagyi Festival (Lock, 1967).
kyannite, gold, graphite and siltimanite graphite, which is found in Sabon Birnin Gwari, in the
BirninGwari local government. This is an important raw material used in the manufacture of
Kaduna State lies between Latitude 090 02‟ N, 110 33‟N and longitude 060 10 E and 08o 50‟E,
occupying a landmass of about 48,473.km2 and total population of 6,066,562 with 3,112,028
males and 2,954,534 females as reflected by the 2006 census result. The state share common
River Kaduna is the only major river in the state and takes its source from the highlands around
the Jos plateau. It is, however fed by many tributaries and in turn, runs into the river Niger.
Kaduna state is mostly an undulating plateau with parts of the state like Zaria town, kagoro and
kwoi areas having protruding hard resistant granite rocks which are as a result of weathering
through the ages of previously existing pre-Cambrian rocks. The erosive activities resulted in the
outgrowth of rocks forming Inselbergs and large rocky upland region which are attractive for
sight- seeing, examples are the Kufena rocks in Zaria, the Kagoro Hills and other interesting rock
The state has two distinct seasons-the dry season and the rainy season. The temperature is hot
during the dry season and cool during the rainy season, from November to February and cold dry
harmattan wind blows across the state, the northern part of the state being affected most. The
southern part of the state enjoys heavier rainfall than the northern part.
The state extends from tropical grassland (savannah) in the south to Sudan savannah in the north.
The savannah region of the state covers the southern part stretching to Gwantu, south of
Kafanchan with prevailing vegetation of tall trees and few shrubs. The Sudan savannah or Sahel
covers the northern part of the state, stretching from Zaria down to Ikara and its environs (Lock,
1967).
CHAPTER TWO
LITERATURE REVIEW
2.0: INTRODUCTION
Transport is the backbone of economic, cultural, social and industrial development of any
country besides its two dimensional role of creating time and space utilities. This sector has not
received due consideration either of universities or academic institutions. A little attention is paid
The frequently used term efficiency commonly relates to a ratio between resources and products,
costs and benefits or inputs and outputs of a defined process. A ratio of output to energy input
contributes to a process involving two forms of energy; the output is often work and the input
can be labor, material, heat, electricity or other forms of energy (Tanaka, 2008). Energy
efficiency is defined by the EU Directive (2006) as ‘‘a ratio between an output of performance,
service, goods or energy, and an input of energy,’’ (Liimatainen and Pöllänen, 2010). Efficiency
also can be seen as the inverse of intensity, which is the ratio of energy input to output, kWh/tkm
or MJ/tkm. A similar term is “effectiveness,” which disregards input and is more qualitative in
character. While efficiency can be defined as doing things in the most economical way or a good
input to output ratio, effectiveness is doing the right things, setting the right targets or measures
to achieve an overall effect or goal. However, efficiency and effectiveness also leaves open
This chapter contains a brief summary of ways to caption transportation and different notions of
made in this chapter to review the literature selectively in the area of transport and road transport
Three basic theoretical models proved anchor for this work. These are explained below in 2.1 to
2.1.1 Trip Generation Model: Trip Generation is the first step in the conventional four-step
transportation forecasting process widely used for forecasting travel demands followed by
Destination Choice, Mode Choice, and Route Choice. It predicts the number of trips originating
in or destined for a particular traffic analysis zone. Every trip has two ends - trips origin zone and
trips destine zone. Generally, land use is divided into two broad categories - residential and non-
residential land uses. For residential land use, trip generation is a function of social and
economic attributes of households which are often measured as housing unit variables. At the
level of the traffic analysis zone, land uses often produce or attract trips, where by assumption
trips are produced by households and attracted to non-household sectors. Production and
attractions differ from origins and destinations. Trips are produced by households even when
they are returning home; that is, when the household is in destination Atoyebi, et al (2015)
expressed this model (referring Ume, 1991; TPH, 1992). In these two categories of trip
generation models and trip production models estimate the number of home-based trips to and
from zones where trip makers reside; while trip attraction models estimate the number of home-
based trips to and from each zone at the non-home end of the trip. According to Barnes and
Davis (2000), different production and attraction models are used to measure each trip purpose.
2.1.2 Trip Distribution Model: Trip distribution (or destination choice or zonal interchange
analysis) is the second component after trip generation, (but before mode choice and route
assignment) in the traditional four-step transportation forecasting model. The trip distribution
stage takes actual trips from the trip generation model and matches them with trips attracted to
destination zones Atoyebi, et al (2015) expressed this model ( referring Oryani and Harris,
1996). In this sense, the distribution phase stimulates the distribution of predicted trips for origin
zones to destinations. Often the distribution mechanism employed is the gravity model. Here, the
number of trips made between an origin and destination is governed to be proportional to some
measure of the destination zone’s ‘mass’ (e.g. the volume of activity opportunities there) and
2.1.3 Modal split: The modal split sub-model is concerned with estimating what proportion of
trips is made by each defined mode of travel from an origin to a destination zone. In
mathematical terms, this is most commonly expressed as a multinomial logit model. The logit
model represents the mode choice as a function of the disutility or cost of using one mode of
travel (e.g. private automobile) over another like public transit Atoyebi, et al (2015) expressed
this model ( referring Oryani and Harris, 1996). See the graphic illustration below:
TRANSPORT
LAND USE
Potential demand
LOCATION & Trip generation
SUPPLY
Trip distribution
EQUILLIBRIUM
Modal split
Transport is the life wire of urbanization. It is one among many factor which determines the form
and socio-economic development of a city. Mobility and accessibility provided by the transport
system have been playing major role in shaping countries, influencing the location of social and
economic activity, the form and size of cities, and the style and pace of life by facilitating trade,
permitting access to people and resources, and enabling greater economic of scale, worldwide
However, urban transport systems are wilting under the pressure of ever growing demands on an
dispersal of amenity and activity has increased the demand for and dependence on motorized
environmental degradation and urban sprawl have increased. Sustainable transport development
plans are thus replacing the routine approach of building more roads to alleviate congestion with
an integrated transport system (Davison et al. 2006) which is affordable, space- and resource-
encouraging and improving public transport system in developing and the developed world has
got wider attention and has become the central issue in transport planning.
Although the primary objectives maybe different, there is an increasing demand to improve the
performance of public transport both in developing and developed countries to make transport
systems sustainable. In the developed world, the primary objective of improving the performance
of this system is to shift modal share away from private car to reduce the negative side effects of
sustainable form of transport is the key aim of the ten year plan for transport (DTLR 2002a,b)
In developing countries however, the primary objective of public transport is to move large
numbers of people with considerable flexibility in other to meet mobility demand, particularly
access for employment throughout the city. However, existing public transport capacities in
developing countries do not satisfy the demand for a number of reasons: the quality of travel on
public transport is poor, roads are badly maintained and managed; and costs of travel are high for
the poor to make regular use of the public transport system, driver’s bad treatment, long and
undisciplined queues at bus stops, badly maintained and unreliable old vehicles and
crowdedness. Besides, public transport services have deteriorated despite the rapidly increasing
demand due to rapid growth in population and urbanization; low standards of efficiency,
reliability and safety, poor enforcement of regulations and shortage of money (Iles 2005).
Efficiency and performance measures in public transport are necessary to monitor progress
towards a result. Efficiency measures compare realize and optimal levels of outputs and inputs. It
measures can be used as means of evaluating recently realized or proposed extensive changes
measure provides information for decision on how to allocate resources and help to prioritize
productivity
Infrastructure availability
Safety
Quality, comfort, conveniences
Network operating Network efficiency measures the ability of the Continuity and balancing of lines
efficiency network support direct services between areas, Operating flexibility
short distance flexibility and coverage. Integration with other modes
Cost of the system
Labor efficiency Labor efficiency refers to the amount of labor Operating employee per vehicle-km
required to produces unit system output Passenger carried per day per total
number of employee
Number of workers employed in
maintenance shop per vehicle serviced
in it
Administrative staff employed per
operating bus.
Utilization efficiency This compares the rate of resource (vehicle, Vehicle utilization
labor, line) utilization to the available capacity. Vehicle breakdown in service
Fuel consumption per km
Vehicle capacity utilization
Line capacity utilization
Labor utilization
Finance efficiency Finance efficiency refers to the amount of Operating cost per vehicle km
investment required and/or gained to/from Operating cost per passenger trip
produced unit system output, Revenue per vehicle-km
Revenue per vehicle-hr
Total revenue per total operating cost
Table 2.2.1 efficiency indicators
This refers to the level of comfort the service offer during travel. Some of these indicators are:
average network speed, waiting time, walking distance to the bus stop, journey time and
reliability.
b. Waiting time is the time passengers have to wait at the bus stops for buses. Longer
c. Walking distance to the bus is the distance passengers have to walk to and from the bus
stops. It is an indicator of the coverage. For well-served urban areas it should be in the
d. Journey time is the total time spent to reach a destination from a given origin. It includes
the walking time, waiting time, on vehicle time and walking to the destination. It should
f. The reliability depends on the actual conditions of buses while they are circulating
indicators: average speed, volume capacity ratio, number of signals per kilometer and
number of bus stops per kilometer. Bus stop spacing needs trade-off between travel time
and walking distance. Too closely spaced stops will increase the delay and thereby the
total travel time. Schedule reliability can be computed as the percent of TU arrivals with
for 90% of journey to operate on time, where this may be defined up to 5mins late for
service with frequencies up to 15mins, up to 10mins late for services with frequencies
between 15mins and 2hrs, up to 30mins late for services with frequencies of more than
Productivity of an economic unit is defined as the ratio of its output to its input and is a function
of many factors such as technology, efficiency, environment, etc. The output of public transport
analyzing public transit production function include number of workers and vehicles and
a. Passengers carried Per Vehicle Per Day (PPVPD); this is computed as total number of
passengers carried divided by total number of vehicles, and then divided by the number
of days in the period (Iles, 2005). It is an indicator of the level of patronage of a bus
average distance travelled per passenger, total demand and the extent to which the
demand varies between peak and off peak periods, and the kilometers operated per bus
length. The passenger volume can either be taken from the maximum load section or
average volume along the line. The passengers travelling at a specific period of time,
usually an hour, past a fixed point in one direction assuming boarding and alighting only
kilometers are the total distance travelled by buses in services. A vehicle should be used
as intensively as possible, provided that sufficient traffic is available to cover the direct
costs of operation. A high KPVPD figure indicates intensive use though it does not
indicate the viability of the kilometer operated. Urban buses on all day service will
normally operate between 150 and 300 kilometers per day (Iles 2005).
CHAPTER THREE
RESEARCH METHODOLOGY
A research design is the conceptual structure, within which research is been conducted. A
research design is a plan, structure and strategy of investigation, that guide the collection of data
and analysis in any research study Oni (2010). The main objective of the study is to provide a
detail analysis of the operational performance of K.S.T.A, therefore a statistical survey method is
adopted in conducting this study. The study should provide a suitable response on the technical
performance in term of terminal capacity, loading capacity and the available vehicles in
operation currently in the organization in the movement of passengers in the country, the
Population is defined as any group of people or objects with the smallest element of
characteristics that separates them from another group Oni (2010). The population of the study
covers the staff of the organization and also the masses that has been patronizing the services of
route lines i.e. from Kaduna – Port Harcourt, Kaduna – Yola, Kaduna – Katsina, Kaduna- Daura,
Kaduna- Sokoto, Kaduna- Maiduguri, Kaduna- Owerri, Kaduna – Enugu, and also there return
trip.
The period covered by this study ranges over a lifespan of ten years (2005-2015) and this is the
population for the purpose of determining, the characteristics of the general public. It involves
the selection of a number of study units from a defined study area. A sample can be said to be a
small representation of a large area of interest. Sampling is done usually because it is impossible
to test every variable prior to the study area. The ideal scenario is to test all variable
characteristics of both terminals to obtain reliable, valid and accurate results since both terminals
function independently in operation, selection of routes and other factors affecting it. For the
dependent variables we considered the average number of passengers and the operational cost
and for our independent variables we will be considering number of employees, trips generated
per year terminal capacity per year, loading capacity per year, available vehicles and checking
A research instrument is refers to as any device or means constructed or designed for the
purpose of either recording as well as measuring of data. It is also a means of generating quotient
information that will be used in solving the research problems. The study adopted both primary
and secondary data. The primary source was achieved through physical observation and
interviews for the collection of data. The secondary data was sourced majorly from the
operations department and subsequently also from the traffic department of Kaduna state
transport authority (K.S.T.A.) which was obtained both manually and electronically from their
The primary data was collected using a systematic random sampling method at the major
K.S.T.A. terminals and a total of 100 copies of questionnaire were administered to commuters.
The questionnaire was divided into two sections; the first section elicited information on the
socio-economic characteristics of the respondents while the second section elicited information
on some explanatory variables that are relevant to the quality of service and operational
encountered by its commuters was done; using two sets of variables. The first set of variables
include: safety/security, speed, fare structure, comfortability, and capacity, the second set of
purchase on a five point Likert Scale. Descriptive statistical method was employed for data
analysis.
The secondary data required in carrying out this study was collected from the following sources,
the operations department , the data include available vehicles in operation, the operational cost
and revenue generated per year for the period of 10years (2005-2015). The trip generation data is
gotten from the booking officer in the operations department in the person of. While the
terminal capacity, loading capacity available checking counters and also the average number of
passengers per year data is gotten from the station managers’ television terminal and U/sarki
terminal.
The statistical analysis of the collected data was carried out using Statistical Package for Social
Science (SPSS). These were used to describe the demographic section and the commuter’s
questionnaire are: capacity (maximum number of people or transit vehicles that can be moved),
comfortability (the level of comfort before, and during the trip with respect to the facilities
provided such as the stations, fare collection system etc.); fare structure (the rate charged for a
particular trip), reliability (the extent to which passengers can rely on K.S.T.A to make trips),
safety/security (view on safe arrival and the rate of incidents and/or accidents of K.S.T.A
relatively to other commercial service), speed (fastness of the system in relation to other public
transport buses, travel Time (time to transit / time spent in the vehicle traveling), waiting Time
A major portion of the results displayed in SPSS are explained in this chapter because these
results are associated with multiple linear regressions. It is the concept of using indicator
variables in regression models. Indicator variables are used to represent qualitative factors in
regression models. The concept of using indicator variables is important to gain an understanding
of ANOVA models, which are the models used to analyze the secondary data obtained from this
study. These models can be thought of as first order multiple linear regression models where all
linear regression model. The following model is a multiple linear regression model with seven
Our number of outputs for this study (n) =2; y1=Average number of passengers, y2= operational
cost
And number of inputs (n) = x1=number of employees, x2=terminal capacity, x3= loading
capacity, x4= trip generation, x5= available checking counters, x6=available vehicles, x7= revenue
generated.
Y = β0 + β 1 x 1 + β 2 x 2 + β 3 x 3 + β 4 x 4 + β 5 x 5 + β 6 x 6 + β 7 x 7 +∈
coefficients. Parameter β 1 represents the change in the mean response corresponding to a unit
change in x 1 when x 2 is held constant. Parameter β 2 represents the change in the mean response
Y = β0 + β 1 x 1 + β 2 x 2 +…+ β k x k + ∈
Let each of the k predictor variables, x 1 , x 2 … x k .have n levels. The x ij represents the
i th level of the j th predictor variable x j . For example x 51 represents the fifth level of the first
predictor variable x 1 , while x 19 represents the first level of the ninth predictor variable , x 9.
Observations, y 1 y 2 … y n recorded for each of these n levels can be expressed in the following
way:
y i=β 0 + β 1 x i 1+ β 2 x i 2+ …+ β k x ik +∈i
y n=β 0 + β 1 x n 1 + β 2 x n 2+ …+ β k x nk +∈n
The system of n equations shown previously can be represented in matrix notations as follows:
y= Xβ+∈
Where;
y1 1 x 11 x12 .. . x1 n
.
.[] [ ]
y2
y= . X=
yn
1 x 21 x22 .. . x 2n
.. . .
.. . .
.. . .
1 x n 1 x n 2 . . . x nn
β1 ∈1
[] []
β2
.
βn
∈2
β= . ∧∈= .
. .
.
∈n
The matrix X is referred to as the design matrix. It contains information about the levels of the
predictor variable at which the observations are obtained. The vector β contains all the
regression coefficients. To obtain the regression model, β should be known. β is estimated using
Where ' represents the transpose of the matrix while -1 represents the matrix inverse. Knowing
the estimates, B the multiple linear regression model, can now be estimated as:
^y = X ^β
The estimated regression model is also referred to as the fitted model. The observations y i, may
be different from the fitted value ^y i obtained from this model. The difference between these two
e= y −^y
^y = X ^β
−1
¿ X ( X ' X ) X' y
¿Hy
−1
Where H= X ( X ' X ) X ' . The matrix, H, is referred to as the hat matrix. It transforms the vector