Econometrics 2 Essay Example | Topics and Well Written Essays - 1000 words

Econometrics 2 - Essay Example The independent variables on the other hand include; Workers, Population Density, Average Income, Products, Price Levels, Competition, Service Ratings, Location (Central London), and Convenience. According to the table above, the R Square and the Adjusted R square are above 50%, 0.652 and 0.564 suggesting that they are 65.2% and 56.4% respectively. This means that 56.4% of the independent variables explain the dependent variable (profit levels). Since the Durbin-Watson, result indicates 2.119, a figure that represents no autocorrelation; therefore, the regression results are reliable and unbiased. The statistical result above can be used effectively in predicting the variations in the profit level at the supermarket group ‘Dodo’. Walrus is an online bicycle store that sells mainly one product, their ‘tBike’. Another online bicycle store, ‘Shifty’, has recently announced a lasting and substantial reduction in their prices for the next year. The analysis below is aimed at determining whether this is likely to significantly affect their sales of tBikes. According to the analysis below, tBike Sales is the dependent variable while shifty Price, Average Income, December, and tBike Price are independent variables. The table below summarizes the descriptive statistics. The model summary below shows the variations and relationship between the dependent and independent variables. According to the table below, the adjusted R squared is 0.729 implying that 72.9% of the independent variables explain the variations of the dependent variable, tBike Sales throughout the period of the data. Since the Durbin-Watson, result indicates 1.087, a figure that represents no autocorrelation; therefore, the regression results are reliable and unbiased. The statistical result above can be used effectively in predicting the variations in the profit level at