REGRESSION ANALYSIS

PRESENTATION
PRESENTATION
REPORT
REPORT
IMPACT OF AGE DEPENDENCY RATIO TO
ECONIMIC GROWTH

Presented By
GROUP 3 JBA2513A
 GROUP MEMBERS

SHAHRUL IZZUDDIN BIN ALIF FARHAN BIN MUHAMMAD RAFHAN

AHMAD FAUZI MAZELAN RAHIMI BIN ZAHRUL-LAIL
(2021477746) (2021898114) (2021609276)
INTRODUCTION
Dependent Variable
A dependent variable is one that is
altered as a result of the modification of
an independent variable. Your
independent variable "depends" on the
outcome you're interested in measuring.
For this assignment, we have choose
Age Dependency Ratio as our
dependent variable.

Independent Variable
An independent variable is one that you
change or alter to examine its effects. It is
named "independent" because it is
unaffected by any other research factors.
We choose Poverty Headcount Ratio,
GDP Growth and Employment in
Industry for independent variable
DEPENDENT
VARIABLE

AGE DEPENDENCY RATIO (OLD)

INDEPENDENT
VARIABLE
POVERTY HEADCOUNT RATIO

EMPLOYMENT IN INDUSTRY

GDP GROWTH (ANNUAL %)

DATA
REGRESSION OUTPUT
 INTERPRETING REGRESSION RESULTS

SUMMARY OUTPUT

The R2 value of 0.9602 indicates From this model, It is evident that GDP Growth (Annual %) has a larger impact on the Age
that 24.92% of the variation in the Dependency Ratio as compared to other variables.
Age Dependency Ratio (old) is
explain by Independent Variables.
This also indicates that 96.02% of
the variation is explained by other
variables.
 INTERPRETING REGRESSION RESULTS

The test of ANOVA is slightly different from Multiple Linear Regression compares to Single Linear Regression. The test significant
model is as follows:

H0: β1 + β2 + β3 = 0

H0: β1 + β2 + β3 ≠ 0

By looking at P-Value of significant F=0.000 < α = 1%, thus, we reject our null hypothesis. Therefore, it is conclusive that at least
one slope is statistically different from zero.
 IDENTIFYING POTENTIAL
MULTICOLLINEARITY

GDP measures the monetary value of goods and services produced within a
country's borders in a given time period, usually a quarter or a year. Changes in
output over time as measured by the GDP are the most comprehensive gauge of an
economy's health.
 CHECKING REGRESSION ASSUMPTIONS
Linearity
Linear trend in scatterplot
Homoscedascity
No pattern in residual plot & data is randomly scattered about zero
Normality of errors
Residual Histogram appears slightly skewed but is not a serious departure
Data Data Analysis Histogram
CONCLUSION
As a result, the multiple regression analysis has
at least partially met our goal of determining
whether the age dependence ratio problems is
not caused by any other changes. The
analysis's findings indicate that, when
compared to other independent variables, the
GDP Growth (Annual %) is the significant
variable. This leads us to the conclusion that
the variable at hand is not necessarily
important. However, this actual result
emphasizes the fact that the poverty
headcount ratio has a major impact on the age
dependency.
THANK YOU

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