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The 5 Steps To Write The Report

The document presents a regression analysis with quantity as the dependent variable and price, income, and population as independent variables. It finds that all the independent variables are statistically significant predictors of quantity and together explain 100% of the variation in quantity. It also describes the negative relationships between quantity and price and income, and the positive relationship between quantity and population.

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17 views

The 5 Steps To Write The Report

The document presents a regression analysis with quantity as the dependent variable and price, income, and population as independent variables. It finds that all the independent variables are statistically significant predictors of quantity and together explain 100% of the variation in quantity. It also describes the negative relationships between quantity and price and income, and the positive relationship between quantity and population.

Uploaded by

x67dv5jqw4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Regression report

Dependent Variable: QUANTITY


Method: Least Squares
Sample: 1 24
Included observations: 24

Variable Coefficient Std. Error t-Statistic Prob.

PRICE -3.79E-12 8.58E-13 -4.411036 0.0003


INCOME -2.80E-13 6.30E-14 -4.447350 0.0002
POPULATION 0.050000 1.49E-15 3.35E+13 0.0000
C 450.0000 2.63E-10 1.71E+12 0.0000

R-squared 1.000000 Mean dependent var 1075.000


Adjusted R-squared 1.000000 S.D. dependent var 353.5534
S.E. of regression 8.25E-12 Akaike info criterion -48.05273
Sum squared resid 1.36E-21 Schwarz criterion -47.85638
Log likelihood 580.6327 Hannan-Quinn criter. -48.00064
F-statistic 1.41E+28 Durbin-Watson stat 0.636096
Prob(F-statistic) 0.000000

Q=C + p+i+ N +U
C = constant I = income
P = price N = population U = Error term or Resid.

The 5 steps to write the report:

Step 1 The equation ‘From coefficient column’:

 Q= 450 - 3.79p - 2.80I + 0.05N + U

Step 2 Test the significance of each variable ‘From probability


Column
N.B: If the number < 0.05 = the variable is significant [sig]
If the number > 0.05 = the variable is not significant [sig]

 Price probability was 0.0003 < 0.05 the price is sig.


 income probability was 0.0002 < 0.05 the income is sig.
 Population probability was 0.000 < 0.05 the population is sig
 constant probability was 0.0003 < 0.05 the constant is sig.

Step 3 Test the Significance of Total Model ‘From prob F-static


Row’:
N.B: If prob F static < or equal 0.05 the total model is [sig]
If prob F static > 0.05 the total model is [not sig]
If it is not sig this is the end of the report.

 Prob. F static = 0.000 < 0.05, then the prob F static < 0.05 sig.

Step 4 Test the power of explanation ‘From adjusted R-squared’:

N.B: Ranges from 0 to 1 then multiply it (×) 100


Example: 1× 100 = 100%
The independent variables (P, I, Pop) can explain the total change in dependent
variable (Q) by …%

 The independent variables (P, I, Pop. & constant) explained the


total change in dependent variable (Q) by 100%

Step 5 Explain for each variable:

a) Relation between variables:

N.B Relation between (P&Q) / (I&Q) / (pop. &Q)

 P&Q inversely relation.


 I &Q inversely relation.
 Pop. &Q directly relation

 P [-] Q (it means negative relation).


 I [-] Q.(it means negative relation )
 Pop [+] Q (it means positive relation).

b) Rank power of effect:


N.B: Neglect the constant variable and the (-ve sign) of variables in doing
Ranking

 Price =3.79 …will be number one 1


 Income =2.80 will be number two 2
 Population =0.05 will be number three 3

c) Explain of independence:

N.B: If independent variable increases or decreases by 1 unit, then dependent


variable ( Q) increases or decreases by
coefficient of variables.

Example:
 increase in price by one unit the Q will decrease by 3.7 unit
 Increase in income by 1 unit the Q decrease by 2.8 unit
 Increase in population by 1 unit the Q increase by 0.05 unit

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