QUESTIONS AND ITS SOLUTION TO ANALYSE REGRESSION

Running head: REGRESSION ANALYSIS
REGRESSION ANALYSIS
Name of the Student
Name of the University
Author Note

REGRESSION ANALYSIS1
Table of Contents
Question 1..............................................................................................................................3
Question 2..............................................................................................................................4
Question 3..............................................................................................................................5
Question 4..............................................................................................................................7
Question 5..............................................................................................................................8
Question 6............................................................................................................................10
References................................................................................................................................11

REGRESSION ANALYSIS2
Question 1
Line chart: Volume of sales in tonnes
Comment:
The line chart at above illustrates the from the volume of sales (in tonnes) In
Indonesia from January 1991 to December 2010. The volume of sales (in tonnes) showed not
very steady figure it is upwards trend over the period.
The line chart show from Jan 1991 to Dec 1999 constant grow from after 10.33 tonnes
to 10.75 tonnes. At Dec 1999 to Dec 2000 was significant high in the12 months period from
12.6 tonnes to 13.17 tonnes. During Jan 2001 to Dec 2010 just grow normal from 11.37
tonnes to 12.69 tonnes.

REGRESSION ANALYSIS3
Question 2
We have to estimate the following equation-
Yt = β0+β1T
Where Yt= Volume sales in period t
T= Trend
Under the null hypothesis that the true population value of each regression
coefficient Volume individually is zero(which means volume tonnes in has no effect on
Volume sales at period t), the exact probability of obtaining a t value of 14.7584 or greater is
practically zero. Smaller the p value, the smaller the probability of making a mistake if the
null hypothesis is rejected. So, Volume Tonnes has a positive and significant effect on
volume sales in period t. This implies when volume tonnes increases, Volume sales i.e. Yt is
expected to increase. Intercept term is also significant at 1 percent level. P-values show the