Module Four Bivariate Regression

1. Bivariate Regression: One

Graph Created for Sales Vs. Profit for the data:

Sales Line Fit Plot

10000
8000
6000
4000
2000 Profit
Profit

Predicted Profit
0
-2000 0 5000 10000 15000 20000 25000
-4000
-6000
-8000
Sales

2. Bivariate Regression: Two

Graph created for Sales Vs. Discount for the Data:

Sales Line Fit Plot

1
0.8
0.6
Discount
Discount

0.4 Predicted Discount

0.2
0
-0.2 0 5000 10000 15000 20000 25000

Sales

3. Explanation: Regression Results

In the First Graph, with Sales Vs. Profit Data, the Regression Statistics data is given
below:
SUMMARY OUTPUT
 Regression Statistics
Multiple R 0.47906435
R Square 0.229502651
Adjusted R Square 0.22942554
Standard Error 205.6390761
Observations 9994

ANOVA
Significance
  df SS MS F F
Regression 1 125857839.3 125857839 2976.24709 0
42287.429
Residual 9992 422535996.7 6
Total 9993 548393836      

Standard
  Coefficients Error t Stat P-value Lower 95% Upper 95%
- -
5.8075735 17.030528
Intercept -12.73286712 2.192459028 8 6.5319E-09 4 -8.4352058
54.554991 0.1735967
Sales 0.180066664 0.003300645 4 0 3 0.18653659

I Choose Profit against Sales as the Independent Variable to check the financial and
sales strength for the company. Increase in Profit Increases the Net Financial Strength
of the Company.

The Graph for the Curve becomes:

Y = -12.73*X + 0.18

In the Second Graph, With Sales Vs. Discount data, the Regression Statistics data is
given below:
SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.028190124
R Square 0.000794683
Adjusted R Square 0.000694683
Standard Error 0.206380246
Observations 9994

ANOVA
Significance
  df SS MS F F
 0.3384760 7.946788 0.00482675
Regression 1 0.33847603 3 7 3
0.0425928
Residual 9992 425.5873173 1
Total 9993 425.9257933      

Standard
  Coefficients Error t Stat P-value Lower 95% Upper 95%
71.965073 0.15403600
Intercept 0.158349152 0.002200361 5 0 1 0.1626623
0.004826 -2.8448E-
Sales -9.33807E-06 3.31254E-06 -2.8190049 8 -1.5831E-05 06

I choose Discount as the Independent Variable to check against the Sales data to
verify if the increase in discount is increasing the value of sales or not.

The Equation for the Graph becomes:

Y = 0.16*X – 9.33*10-6

4. Articulation of Response:

Bivariate Regression is one of the most important tool in excel that is used to
understand or analyse the relationship that exists between two variables. In the current
project, the bivariate analysis of Sales and Profit data is done. Also, Bivariate Analysis
of Sales and Discount data is done to understand the relationship of sales with profit
and discount.

5. References:

1. Statology, (n.d.). How to Perform Bivariate Analysis in Excel.

https://www.statology.org/bivariate-analysis-in-excel/