Eastern Electric and Gdp Per Capita at Slovakia

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Empirical Analysis of Two Environments: Eastern Electric and GDP per capita at Slovakia PART A Task A: Eastern Electric produces television sets. The company wants to get a grasp on the sensitivity of the quantity demanded of its product to the various factors that affect it. a) Make a graph and suggest a simple regression model for the data below. b) Compute the coefficient of determination and explain the result. c) Suggest a different approximation, compute the regression equation, coefficient of determination and compare it with results in a) and b). d) Explain the nature of this relationship. Quantity demanded | Average annual income | 250 | 28123 | 330 | 32350 | 360 | 33495 | 380 | 33540 | 400 | 33999 | 400 | 34120 | 410 | 39954 | 440 | 40091 | 440 | 41650 | 440 | 41840 | 445 | 41956 | 450 | 42500 | 460 | 42900 | 470 | 43254 | 480 | 44001 | 500 | 44931 | 500 | 45125 | 520 | 47012 | Given data Resolution A: a) and b) Make a graph and suggest a simple regression model for the data below. Compute the coefficient of determination and explain the result. This linear equation shows the increase of average annual income as the quantity demanded grows. Coefficient of determination shows that the variation of quantity explained by the variation in the variables is not in perfect correlation (R2 = 0,9116)and so this interpretation of data (linear model) does not perfectly fit this analysis. Linear regression model represents data relatively accurately and is easiest for managers to read from. This data shows us that Eastern Electric should keep the growing trend in productivity of their products because there is also a growth in quantity demanded by its customers. It is not possible to decide if the annual income of the company depends on the quantity demanded because there is no timeline

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