Quantitative Method for Economic Analysis

QUANTIATIVE METHOD FOR ECONOMIC ANALYSIS
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Introduction
The company selected for this task is CSL Ltd. The business is more than a century old as it was
started in 1916 as a Federal government department but was privatized in 1994. The main
business of the company is specialty biotechnology as the company does research, manufactures
and markets pharmaceutical products that aid in the treatment and prevention of various serious
human conditions. Over the years, the company has done pioneering work in biotechnology and
came up with treatments for diseases for which no treatment previously existed. The annual
revenue for the company is about A$ 8 billion. The objective of the given analysis is to carry out
a regression analysis to outline the impact of benchmark index (S&P/ASX 200) on the price
movements witnessed in the CSL stock over the 12 month period during 2018. Based on the
regression analysis, relevant suggestions for improvement of the model have also been provided.
Descriptive Statistics
The relevant descriptive statistics have been obtained from Excel and summarized below.
Measures of Central Tendency
The measures of central tendency included in the descriptive statistics are mean, median and
mode. For the index, it is evident that the average closing prices weekly returns are -0.14% and
lower than the average opening prices weekly returns which stand at -0.12%. The average
weekly stock returns for CSL are higher than the index as the returns are positive. Also, the
average weekly return for CSL is higher for opening prices. With regards to the index, owing to