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Notes 3

1) The document discusses multiple linear regression analysis with revenue (R) as the dependent variable and CTRP and promotion (P) as independent variables. 2) The regression equation found that R increases by 5931.850 for every 1 unit increase in CTRP and increases by 3.136 for every 1 unit increase in P. 3) Both independent variables were found to be statistically significant predictors of R since their p-values were less than 0.05.

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Vaibhav Sehgal
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11 views

Notes 3

1) The document discusses multiple linear regression analysis with revenue (R) as the dependent variable and CTRP and promotion (P) as independent variables. 2) The regression equation found that R increases by 5931.850 for every 1 unit increase in CTRP and increases by 3.136 for every 1 unit increase in P. 3) Both independent variables were found to be statistically significant predictors of R since their p-values were less than 0.05.

Uploaded by

Vaibhav Sehgal
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Where, β0 is the intercept, β1 β2 β3… βk are the regression coefficients.

x1,x2….xk are the set of independent variables, is the

For multiple linear regression model, dependent variable should be numeric in nature and
independent variables can be both numeric and categorical in nature.

Always adjusted R square should be less than or equal to R square.

No multi collinearity in data

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 41008.840 90958.920 .451 .655
CTRP 5931.850 576.622 .732 10.287 .000
P 3.136 .303 .736 10.344 .000
a. Dependent Variable: R

MLR Equation

R = 41008.840 + 5931.850*CTRP + 3.136*P + E

Every 1 unit increase in ctrp, r increases by 5931.850 when the variable promotion is kept constant.

Similarly, for 1 unit increase in promotion, the revenue (r) increases by 3.136, when ctrp is kept
constant.

Partial regression coefficients

Significance of Regression coefficients

H01: There is no relationship between Revenue and CTRP

Ha1: There is a relationship between Revenue and CTRP

H01: β1 = 0

Ha1: β1 ≠ 0

H02: There is no relationship between Promotion and Revenue

Ha2: There is a relationship between Promotion and Revenue


H02: β2 = 0

Ha2: β2 ≠ 0

Since P-value of CTRP and P is less than alpha (0.05), we reject null hypothesis which means both
variables are statistically significant.

Overall MLR Equation is significant

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 573761326866.6 2 286880663433.3 86.623 .000b
53 26
Residual 115913569910.1 35 3311816283.148
90
Total 689674896776.8 37
42
a. Dependent Variable: R
b. Predictors: (Constant), P, CTRP

H0: β1 = β2 = 0

Ha: Not all β ‘s are zero

Since P-value of statistically significant CTRP and P is less than alpha (0.05), we reject null hypothesis
which means both the Overall MLR Model is statistically significant.

R-square and Adjusted R-square Values

Model Summaryb
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .912a .832 .822 57548.382
a. Predictors: (Constant), P, CTRP
b. Dependent Variable: R

83.2% in R is shown by CTRP and P

No funnel forming so follows homoscadescity

Best Model
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 395.571 137.062 2.886 .004
Family Size -129.415 38.272 -.155 -3.381 .001
Income .017 .001 .752 16.358 .000
a. Dependent Variable: Amount Spent

A = 395.571 – 129.415*Family size + 0.017*Income + E

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