Business Analytics

Multiple Regression Analysis

Case-1
From the given data develop a best regression model to predict the market price of a firm.
Compute the regression models by ENTER & FORWARD Method both. Does the market
price depend on the following?

Dividend
EPS
Change in Sales
Change in Income
Change in Assets
Old Price

Name

Price

DIV

EPS

Change
in Sales

Duke Power

39.5

1.76

2.21

First Union
Wachovia
Carolina Power and
Light
nucor

47.5
36.5
33

1.28
1
1.58

91.25

Food Lion
Jefferson Pilot
Unifi
Family Dollar Stores
BB&T Finencial
Lance
Cato
Piedmont Natural
Gases
Southern Naional
First Citizen
Banchshares
Ruddick
United Dominion
Industries

Change in
Assets

OLD PR

3.8

Change
in
Income
-14.6

3.2

35

3.72
2.48
2.36

1.4
-15.7
3

69.7
88.7
4

11.4
0.6
2.6

30
29
27

0.28

1.83

10.5

22.4

26.1

44.75

7
55
33.88
18.5
34.13
23.63
30.5
22

0.11
1.3
0.4
0.25
0.91
0.92
0.08
0.91

0.37
3.99
1.04
1
2.75
1.25
1.03
1.4

11.8
2.5
13.4
17.1
-3.3
2.6
24.5
11.7

-13.2
15.7
6.9
38.3
26.4
3.8
94.7
71.8

24.9
6.3
64.7
19.7
7.4
4.4
54.2
8.7

18.25
37.75
22.38
17.25
22
21.75
14.5
16.75

21.88
53

0.5
0.53

1.73
5.45

6
-7.5

48
77.4

23.3
1

13.88
27.5

21.38
13.13

0.39
0.2

1.3
0.61

6.2
26.7

14.9
-12.6

8.8
16.4

15.25
9.13

Centura Banks
Guliford Mills
CCB Financial
United Carolina
Bancshares

23.88
26.13
40.5
22.5

0.63
0.57
1.14
0.66

1.66
1.73
3.1
2.01

-6.6
16.3
-9
-9.6

182.3
56.2
18
21.7

10.1
9.1
7.1
7.1

12.75
22.25
28.63
15.88

Coastal Healthcare
Group
Public Service of NC

21

0.1

0.85

30.4

43

51.7

27.75

17.25

0.75

1.09

24.4

58.9

8.1

11.88

Oakwood Homes
NC Natural Gas
Bank of Granite
PCA International
Ingles Market

20.25
26.63
30
16.25
6.25

0.06
0.98
0.38
0.28
0.22

0.9
1.79
1.65
0.89
0.31

42.4
18.9
-9.7
8
2.1

58
38.3
13.3
5.6
-48.8

25.3
23
7.9
51.4
2

10.63
16.38
19.63
14.88
6.13

Case-2
Develop a best suited model to forecast the Total Annual Food grain based on the data given
below and compare the forecasting errors of two models obtained by the forward regression
analysis.
Year

Total Food
grain

Gross Sown Area

(in Mn hectare)

Gross
Irrigated
Area(in
Mn
hectare)

Consumption of
Fertilisers
(N+P+K) (lakh
tonnes)

Consumption of
Pesticides (Technical
Grade Material) ('000
tonnes)

Annual
Tractor
sales

1982-83

129.52

172.75

51.83

63.88

50.00

63073

1983-84

152.37

179.56

53.82

77.10

55.00

74318

1984-85

145.54

176.33

54.53

82.11

56.00

80317

1985-86

150.44

178.46

54.28

84.74

52.00

76886

1986-87

143.42

176.41

55.76

86.45

50.00

80164

1987-88

140.35

170.74

56.04

87.84

66.90

93157

1988-89

169.92

182.28

61.13

110.40

75.89

110323

1989-90

171.04

182.27

61.85

115.68

72.00

122098

1990-91

176.39

185.74

63.20

125.46

75.00

139831

1991-92

168.38

182.24

65.68

127.28

72.13

150582

1992-93

179.48

185.70

66.76

121.55

70.79

144330

1993-94

184.26

186.58

68.26

123.66

63.65

138879

1994-95

191.50

188.05

70.65

135.64

61.36

164841

1995-96

180.42

187.47

71.35

138.76

61.26

191329

1996-97

199.43

189.50

76.03

143.08

56.11

220937

1997-98

193.12

189.99

75.67

161.88

52.24

251198

1998-99

203.61

191.65

78.67

167.98

49.16

262322

1999-00

209.80

188.40

79.22

180.70

46.20

273181

2000-01

196.81

185.34

76.19

167.02

43.58

254825

2001-02

212.85

188.29

78.42

173.60

47.02

225280

2002-03

174.78

175.58

73.41

160.94

48.30

173098

2003-04

213.19

190.08

78.15

167.99

41.00

190336

2004-05

198.36

191.55

81.18

183.98

40.67

247531

2005-06

208.59

193.05

83.94

203.40

39.77

296080

2006-07

217.28

193.23

86.50

216.51

37.95

352781

2007-08

230.78

195.83

87.26

225.70

36.29

346501