Regression of Renata Pharmaceuticals Ltd.
Dependent and Independent variable data for regression are given below:
Year | Market Share Price | ROE | DPS | P/E | NP | 2000.0 | 431.5 | 11.34 | 30.0 | 5.34 | 37.56 | 2001.0 | 615.25 | 17.43 | 40.0 | 4.12 | 67.23 | 2002.0 | 650.0 | 16.25 | 50.0 | 4.16 | 72.56 | 2003.0 | 1261.0 | 22.57 | 70.0 | 5.55 | 105.56 | 2004.0 | 3200.0 | 25.0 | 70.0 | 12.27 | 145.59 | 2005.0 | 3000.0 | 26.0 | 70.0 | 10.43 | 192.57 | 2006.0 | 3099.25 | 24.65 | 70.0 | 23.14 | 242.13 | 2007.0 | 7491.25 | 26.29 | 70.0 | 40.31 | 358.02 | 2008.0 | 7789.25 | 26.06 | 75.0 | 32.5 | 438.67 | 2009.0 | 12051.5 | 27.34 | 85.0 | 36.09 | 594.48 |
Where market price is dependent variable and ROE, DPS, P/E,
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So the critical value is 5.41. The region where Ho is not rejected and the region where Ho is rejected are shown in the following diagram.
Region where Ho is not rejected
5.41
Region of rejection (0.05 level)
Continuing with the global test, the decision tool is not to reject the null hypothesis. The computed value of ‘f’ is less than or equal 5.41. If the computed value is more than 5.41 then we reject the Ho.
SSR/k | SSE/[m-(k+1)] |
The value of F is found from the following equation: F = = 47.16
The computed value of F is 47.16 which is in the rejection region. The null hypothesis that the multiple regression coefficients are 0 is therefore rejected. This means that sum of the independent variables have the ability to explain the variation in the dependent variable.
Evaluating individual regression coefficient:
Our next step is to test the independent variables individually to determine which regression coefficients may be 0 and which are not. If a ß could be equal to 0, it indicates that this particular independent variable is of no value in explain any variation in the dependent value. If there are coefficients for which Ho can’t be rejected. We may want to eliminate coefficient from regression equation.
We will now conduct four separate test of
So, we should reject the null hypothesis H0. At a 0.05 level of significance level, we conclude that there is a significant difference between the average height for females and the average height for the males.
17 In regression analysis, the coefficient of determination R2 measures the amount of variation in y
We reject Ho if χ2 > χα2. At α=0.05, with 4 degrees of freedom, the critical value becomes χα2=9.488 (table E.4)
After reviewing the regression equation and statistics, there is a high % of Spanish Speaking population, low % of people with dryers and freezers and sales are high in locations with a lower competitive type and with high population. Higher
For d3, t-statistic= 8.8773, t-statistic > t-critical. Thus we reject Ho and d3 is significant.
The null hypothesis is rejected since the p-value is below the significance level of 0.05.
The statistical significance of a coefficient tests determines coefficients potential of being zero. The zero potential increases when there is significant variance in the independent variables. A large variance also suggests that the variable used have no effect on the dependent variable.
The Null Hypothesis for this test was Ho: u1- u2 = 0. Dr. Williams Found that the t-value = 0.98603, the p-value = 0.328213, and that p < 0.05. This means his results were not significant at a 0.05 level. Therefore, we fail to reject the null. Dr. Williams can conclude there is no difference between the scores of his two Intro Psych. classes.
contribution of each X variable with the Y variable after all other X variables are included in the model.
located down the row of the t-table. The critical value result is the point where the a-level and degrees of
As stated above for the p-value, I was able to perform a hypothesis test for the regression coefficients of β₁, β₂, β₃. The coefficients of β₁, β₂, β₃ are the same as x₁, x₂, and x₃. This was examined by looking at the individual p-values to verify if these coefficients will be used in the model for explanation.
Since 3.27 the t statistic is in the rejection area to the right of =1.701, the level of
5) From calculations, computed z value is more than -1.65 and falls within Ho not rejected region. Ho is not rejected at α = 0.05 & α = 0.01 significance levels.
To test the multicollinearity, we use the VIF test. From the table it is obvious that no variables have a VIF which is greater than 10. That is, no trouble variables contribute to the multicollinearity problem.
Biostatistics is important to study as undergraduates delve deeper into their studies of Biology and learn how the study of life is integrated into more than just their college-level science courses. Looking into the use of statistics at a scientific level at this stage of our education is preparing determined and enthusiastic students for the world of medicine as one day we will have to read and analyze sets of data and more than likely give the statistics of our patients’ issues. Biostatistics is allowing students to explore the world of medicine using a different approach, mathematically and critically. The purpose of this experiment was to determine if a significant multiple regression exists between my 3 quantitative variables, Weight, Height and Age and to determine the best regression model to use when making predictions.