t-Test: Paired Two Sample for Means

Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

Variable 1 Variable 2
2000.00
28.20
156250.00
1.70
5.00
5.00
-0.85
0.00
4.00
11.12
0.00
2.13
0.00
2.78

t-Test: Paired Two Sample for Means

Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

Variable 1
Variable 2
56050
26350
82200000 297487500
5
5
-0.971256399
0
4
2.540317953
0.031979652
2.131846782
0.063959304
2.776445105

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.899052841
R Square
0.80829601
Adjusted R Square
0.784333012
Standard Error
4.220686111
Observations
10
ANOVA
df
Regression
Residual
Total

Intercept
X Variable 1

1
8
9

SS
MS
F
Significance F
600.89056
600.89056 33.73100422
0.00040156
142.51353 17.81419125
743.40409

Coefficients Standard Error

t Stat
P-value
18.4137107
4.535538718 4.059872893 0.003634081
0.002953633
0.00050856 5.807839892 0.00040156

Lower 95%
7.954739667
0.001780892

Upper 95% Lower 95.0% Upper 95.0%

28.87268173 7.954739667 28.87268173
0.004126373 0.001780892 0.004126373

Example
(Data are hypothetical on common sence basis)
Upper Middle Class
No.

Price of Shoes of
Puma

Demand (in one

store of C.G.
Road)

1
2
3
4
5

1500
1750
2000
2250
2500

30
28
29
27
27

Middle Class

Monthly Average
income of this
area

Total revenue

Demand (in
one store in
City area)

60000

45000
49000
58000
60750
67500

30
22
15
7
1

Elasticity
Price Elasticity of Demand
% Change in Demand
% Change in Price
PED
Income Elasticity of Demand
% Change in Demand
% Change in Income
IED

10.00
-66.67
-0.15

48.28
41.67
1.16

Change in Total revenue

Regression Line

96.67
-66.67
-1.45

22500.00

-0.85

-1.00

Hypothesis Analysis (one tailed)

Now if the seller (Puma Store) believes that If they increase the price of shoes in Upper Middl
demand
Total revenue
Current Price
2000.00
29.00
58000.00
Prospected Price
2500.00
27.00
67500.00
Mean
2000.00
Std Deviation
9.949874371
N
5
Square root of N
6.32455532
Now,
-317.8208631
Null hypothesis
Ho :

Demand (in one store in City area)

35
30

30

Demand

25
20
15

Demand (in one store in City

area)

10

Linear (Demand (in one store

in City area))

y = -0.0292x + 73.4
R = 0.9979

0
0

500

1000

1500

2000

2500

3000

Price

Year

Cross Elasticity
Price of Fuel

2001
2002
28.91
2003
32.7
2004
37.84
2005
43.49
2006
44.85
2007
43.52
2008
45.62
2009
44.72
2010
55.87
2011
58.37
www.energy-mira.blogspot.in
http://www.rtoaifmvd.com

Sales of Vehicle
3933
8083
5711
8783
8117
7089
8646
9598
11544
13731

Total no. of vehicle

54991
58924
67007
72718
81501
89618
96707
105353
114951
126495
140226

% Change in one Variable

-101.90
% Change in another variable -249.12
Cross Elasticity
0.41
2002 58924 41581 7613 635 2974 6121
17 2003 67007 47519 8599 724 3492 6676
18 2004 72718 51922 9451 768 3748 6829
19 2005 81501 58799 10320 892 4031 7451
20 2006 89618 64743 11526 992 4436 7921
21 2007 96707 69129 12649 1350 5119 8460
22 2008 105353 75336 13950 1427 5601 9039
23 2009 (P) 114951 82402 15313 1486 6041 9710

16000
14000
12000
10000
8000
6000
4000
2000

Middle Class
Monthly
Average
Total Revenue
income of this
area
45000
38500
30000
35000
Current Price
15750
2500

-42500.00

price of shoes in Upper Middle Class Area store (C.G. Road), then the overall revenue will increase.

Demand (in one store of C.G. Road)

30.5
30

30

Axis Title

29.5
29
Demand (in one store of
C.G. Road)

28.5
28

Linear (Demand (in one

store of C.G. Road))

27.5
27

y = -0.0028x + 33.8
R = 0.7206

26.5
0

500

1000

1500

2000

2500

3000

Axis Title

16000
14000
12000
10000
8000

Sales of Vehicle

6000
4000
2000
0
0

20

40

60

80

Price Elasticity of Demand

% Change in Demand
% Change in Price
PED

Income Elasticity of Demand

% Change in Demand
% Change in Income
IED

In Upper
Middle Class
Market
10
-66.66666667
-0.15
Between Two
Market
48.27586207
41.66666667
1.15862069

In Middle
Class Market
96.66666667
-66.66666667
-1.45

In Upper
Middle Class
Market
Correlation

-0.85

In Middle
Class Market
-1.00