Apendix 1

Linear functional analysis

PAINT INDUSTRY
Sales,Y Price, P Income, A Advertisement, M
Region ( 1,000 gallons ) ( RM / gallon ) ( RM1,000 ) ( RM 1,000 )
1 160.0 15.0 19.0 150.0
2 220.0 13.5 17.5 160.0
3 140.0 16.5 14.0 50.0
4 190.0 14.5 21.0 190.0
5 130.0 17.0 15.5 90.0
6 160.0 16.0 14.5 60.0
7 200.0 13.0 21.5 140.0
8 150.0 18.0 18.0 110.0
9 210.0 12.0 18.5 200.0
10 190.0 15.5 20.0 100.0
n=10 1,750.0 151.0 179.5 1,250.0

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.889
R Square 0.790
Adjusted R Square 0.684
Standard Error 17.417
Observations 10

ANOVA
df SS MS F Significance F
Regression 3 6829.866 2276.622 7.505 0.019
Residual 6 1820.134 303.356
Total 9 8650.000

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept, α 310.245 95.075 3.263 0.017 77.605 542.885
Price ( RM / gallon ), P -12.202 4.582 -2.663 0.037 -23.414 -0.991
Income ( RM1,000 ) , A 2.677 3.160 0.847 0.429 -5.056 10.409
Advertisement ( RM 1,000 ) ,M 0.008 0.204 0.038 0.971 -0.492 0.507
Apendix 2
Non-Linear functional analysis

PAINT INDUSTRY
Sales Price Income Advertisement
Region ( 1,000 gallons ), Y( RM / gallon ), P( RM1,000 ), A ( RM 1,000 ), M
1 160.0 15.0 19.0 150.0
2 220.0 13.5 17.5 160.0
3 140.0 16.5 14.0 50.0
4 190.0 14.5 21.0 190.0
5 130.0 17.0 15.5 90.0
6 160.0 16.0 14.5 60.0
7 200.0 13.0 21.5 140.0
8 150.0 18.0 18.0 110.0
9 210.0 12.0 18.5 200.0
10 190.0 15.5 20.0 100.0
n=10 1,750.0 151.0 179.5 1,250.0

To be transform to non-linear relationships as per below table :

Sales,Y Price, P Income, A Advertisement, M

Region ( 1,000 gallons ) ( RM / gallon ) ( RM1,000 ) ( RM 1,000 )
1 5.0752 2.7081 2.9444 5.0106
2 5.3936 2.6027 2.8622 5.0752
3 4.9416 2.8034 2.6391 3.9120
4 5.2470 2.6741 3.0445 5.2470
5 4.8675 2.8332 2.7408 4.4998
6 5.0752 2.7726 2.6741 4.0943
7 5.2983 2.5649 3.0681 4.9416
8 5.0106 2.8904 2.8904 4.7005
9 5.3471 2.4849 2.9178 5.2983
10 5.2470 2.7408 2.9957 4.6052
n=10 51.503 27.075 28.777 47.385

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.8892
R Square 0.7907
Adjusted R Square 0.6861
Standard Error 0.1011
Observations 10

ANOVA
df SS MS F Significance F
Regression 3 0.2316 0.0772 7.5579 0.0184
Residual 6 0.0613 0.0102
Total 9 0.2929

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept 6.9519 1.4429 4.8181 0.0029 3.4213 10.4824
Price ( RM / gallon ), P -1.0374 0.3655 -2.8381 0.0296 -1.9318 -0.1430
Income ( RM1,000 ), A 0.3882 0.3753 1.0344 0.3408 -0.5302 1.3067
Advertisement ( RM 1,000 ), M -0.0232 0.1420 -0.1635 0.8755 -0.3708 0.3243