ROAD TRIP

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Scenario 2
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Scenario 4
01 02 03

Questions
 ANS 1

Sonu should select SCENARIO 2 as:

R^2 value is maximum

Beta value is standardized
In scenario 2 the regression model is
significant because its value is less
than 0.05
Oil price is the most important variable
to predict amount as it is a dependent
variable.

.
 ANS 2

 All the 4 scenarios are significant since the

significance value is less than 0.05 in all 4
scenarios.
 Oil prices is the most important variable to
predict amount since Standardized
coefficient of Beta value is .835 which is
high in comparison to other scenarios.
 1 unit change in oil prices will change the
amount paid by 835 rupees since
standardized coefficient of beta is 835. So, if
oil price is changed by 1 unit then amount
paid will increase by 835 rupees.

.
 ANS 3

• x = 77
• m = 117.058
• c = -8826.924
• y = mx + c
=117.058*77 + (-8826.924)
=186.542
• Thus, Sonu requires Rs 187
approx. for budgeting his fuel
expenses.
MAGIC FOOD
 ANS 1

• Cross-sectional analysis focuses on

many companies over a focused time
period.

• As per case study, magic foods Ltd

hired a research company called “Care
Research” to analyze the market
condition by looking at different
factors that directly or indirectly affect
the sales and market share of company.
As the company is engaging in FMCG
sector which is a monopolistic market
so the research company has taken
various factor and used cross section
analysis.
 ANS 2

• The research company

must have opted for
primary data source
which states that those
type of data which is
collected for the first time
has been used for the
data of market potential
because for forecasting of
future sell current market
potential should be
considered.
 ANS 3

Yes by applying
Regression analysis
company can predict the
future sales.
INVERTER
ANS 1
ANS 2
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THANK YOU