QUIZ2

SUBJECT CODE: EBJ3P4

SUBJECT NAME: KOMPUTASI STATISTIKA
TOPIC 2: Two-Variable Regression Analysis: Some Basic Ideas
Learning Outcome CLO 1. Students are able to understand the concepts and mechanisms of statistical
computing and regression analysis.
Think How to measure the risks and return
Reference 1. Mark Berenson et al. 2018, Basic Business Statistics; Concepts and
Applications (What’s New in Business Statistics). 14th editions. Pearson
2. Gujarati, D.N., Porter, C. 2009. Basic Econometrics. 5th Edition. McGraw-Hill
Irwin, Boston
Task / Activity You have been presented with the following data and asked to fit statistical
demand functions:

SALES SALES (Y) PROMOTION SELLING

REGION (X 1000 LITERS) EXPENSES (A) PRICE (P)
(X RP1000) (RP/LITER)
1 160 150 15.00
2 220 160 13.50
3 140 50 16.50
4 190 190 14.50
5 130 90 17.00
6 160 60 16.00
7 200 140 13.00
8 150 110 18.00
9 210 200 12.00
10 190 100 15.50

You are required to do the following:

Develop a simple regression model with paint sales (Y) as the dependent variable
and selling price (P) as the independent variable.
a. Show the estimated regression equation.
b. Give an economic interpretation of the estimated intercept (a) and slope (b)
coefficient.
c. Test the hypothesis (at the 0.05 significance level) that there is no
relationship (i.e., β = 0) between the variables.
d. Calculate the coefficient of determination.
e. Perform an analysis of variance on the regression, including an F-test of the
overall significance of the results (at the 0.05 level).
f. Based on the regression model, determine the best estimate of paint sales in a
sales region where the selling price is RM14.50. Construct an approximate
95 per cent prediction interval.
g. Determine the price elasticity of demand at a selling price of RM14.50.

Due date 7 March 2024: Time: 23.55PM