obs sales expendingD2 D3

1 19583 3346 1 0 SUMMARY OUTPUT

2 20263 3114 1 0
3 20325 3554 1 0 Regression Statistics
region A 4 26800 4642 1 0 Multiple R 0.300138
5 29470 4669 1 0 R Square 0.090083
6 26610 4888 1 0 Adjusted R Square 0.05217
7 30678 5710 1 0 Standard Error 4068.947
8 27170 5536 1 0 Observations 51
9 25853 4168 1 0
10 24500 3547 1 0 ANOVA
11 24274 3159 1 0 df
12 27170 3621 1 0 Regression 2
13 30168 3782 1 0 Residual 48
14 26525 3782 1 0 Total 50
15 27360 3982 1 0
16 21690 3568 1 0 Coefficients
17 21974 3155 1 0 Intercept 26158.62
18 20816 33059 1 0 X Variable 1 -1734.47
19 18095 2967 1 0 X Variable 2 -3264.62
20 20939 3285 1 0
21 22644 3914 1 0 y=B0 + B1D2i Xi + B2D
= 26158.6- 1734.5 D
Refion 2 22 24624 4517 0 1
23 27186 4349 0 1
24 33990 5020 0 1 sales fig of region A is lower by 1734
25 23382 3594 0 1 the sales fig of region b is lower by rs
26 20627 2821 0 1
27 22795 3366 0 1
28 21570 2920 0 1
29 22080 2980 0 1
30 22250 3731 0 1
31 20940 2853 0 1
32 21800 2533 0 1
33 22934 2729 0 1
34 18443 2305 0 1
35 19538 2642 0 1
36 20460 3124 0 1
37 21419 2752 0 1
38 25160 3429 0 1
39 22482 3947 0 0
40 20969 2509 0 0
41 27224 5440 0 0
42 25892 4042 0 0
region 3 43 22644 3402 0 0
44 24640 2829 0 0
45 22341 2297 0 0
46 25610 2932 0 0
47 26015 3705 0 0
48 25788 4123 0 0
49 29132 3608 0 0
50 41480 8349 0 0
51 25845 3766 0 0
 For region A code 1
and for other region code o
D2 is the code for region 2

RULE -1
If there are m variables, dummy variables should b
M-1 (Most imp rule)
the eqn for dummy line is
y=B0 + B1D2i Xi + B2D%X2 + Ui

Rule - 2
the category which no dummy variable is assigned
known as the base, benchmark or comparision
SS MS F Significance F variable.all comaprisons are made in relation to th
78676547 39338273 2.376027 0.103764 benchmark category
7.95E+08 16556327
Rule - 3
8.73E+08 Any variable can be made as the base or the
benchmark catcateogory. in all the cases the interc
represents the mean value of the benchmark
Standard Error t Stat P-value Lower 95%Upper 95%
Lower 95.0%
Upper 95.0% category.
1128.523 23.17952 1.02E-27 23889.57 28427.66 23889.57 28427.66
1435.953 -1.20789 0.233007 -4621.65 1152.704 -4621.65 1152.704
1499.155 -2.17764 0.034379 -6278.87 -250.363 -6278.87 -250.363

y=B0 + B1D2i Xi + B2D%X2 + Ui

= 26158.6- 1734.5 D1 - 3264.6 D2

f region A is lower by 1734.47 from the sales fig of region c

fig of region b is lower by rs 3264.6 from the sales fig of region c

de o
n2

ables, dummy variables should be

e)
y line is
B2D%X2 + Ui

h no dummy variable is assigned is

e, benchmark or comparision
risons are made in relation to the
ory

e made as the base or the

eogory. in all the cases the intercept
an value of the benchmark
 obs sales Spending D2 D3
1 19583 3346 1 0 SUMMARY OUTPUT
2 20263 3114 1 0
3 20325 3554 1 0 Regression Statistics
region A 4 26800 4642 1 0 Multiple R 0.850097
5 29470 4669 1 0 R Square 0.722665
6 26610 4888 1 0 Adjusted R Square 0.704963
7 30678 5710 1 0 Standard Error 2270.152
8 27170 5536 1 0 Observations 51
9 25853 4168 1 0
10 24500 3547 1 0 ANOVA
11 24274 3159 1 0 df
12 27170 3621 1 0 Regression 3
13 30168 3782 1 0 Residual 47
14 26525 4247 1 0 Total 50
15 27360 3982 1 0
16 21690 3568 1 0 Coefficients
17 21974 3155 1 0 Intercept 13269.11
18 20816 3059 1 0 X Variable 1 3.288848
19 18095 2967 1 0 X Variable 2 -1673.51
20 20939 3285 1 0 X Variable 3 -1144.16
21 22644 3914 1 0
region B 22 24624 4517 0 1
23 27186 4349 0 1
24 33990 5020 0 1
25 23382 3594 0 1
26 20627 2821 0 1
27 22795 3366 0 1
28 21570 2920 0 1
29 22080 2980 0 1
30 22250 3731 0 1
31 20940 2853 0 1
32 21800 2533 0 1
33 22934 2729 0 1
34 18443 2305 0 1
35 19538 2642 0 1
36 20460 3124 0 1
37 21419 2752 0 1
38 25160 3429 0 1
39 22482 3947 0 0
40 20969 2509 0 0
41 27224 5440 0 0
42 25892 4042 0 0
region 3 43 22644 3402 0 0
44 24640 2829 0 0
45 22341 2297 0 0
46 25610 2932 0 0
47 26015 3705 0 0
48 25788 4123 0 0
49 29132 3608 0 0
50 41480 8349 0 0
51 25845 3766 0 0
 y= B1 + B2 D21 +B3D3i + B4.... + Ui
= 13269 - B2 1673 - 1144
B1 - mean salary of teachers in region c
mean salary of teacher in rgn a is lower by 1673 in region c
mean salary of teacher in rgn B is lower by 1144 in region c

Holding other variables constant if exp is inc by 1 rupee on an avg the salary of the
teachers increases by rs 3.3

SS MS F Significance F
6.31E+08 210387160.887638 40.82341 3.87488371445191E-13
2.42E+08 5153591.10562843
8.73E+08

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

Lower 95.0%
1395.056 9.5115298662 1.57E-12 10462.6239909879 16075.6 10462.62
0.317642 10.3539304037 1.03E-13 2.6498337808 3.927862 2.649834
801.1703 -2.0888372864 0.042164 -3285.2611403142 -61.7676 -3285.26
861.1182 -1.3286871845 0.190366 -2876.5029908752 588.1896 -2876.5
Upper 95.0%
16075.6
3.927862
-61.7676
588.1896
week costomer sales
1 794 9.33
2 799 8.26 SUMMARY OUTPUT
3 837 7.48
4 855 9.08 Regression Statistics
5 845 9.83 Multiple R 0.81083
6 844 10.09 R Square 0.657445
7 863 11.01 Adjusted R Square 0.631095
8 875 11.49 Standard Error 0.936037
9 880 12.07 Observations 15
10 905 12.55
11 886 11.92 ANOVA
12 843 10.27 df SS
13 904 11.8 Regression 1 21.86043
14 950 12.15 Residual 13 11.39014
15 841 9.64 Total 14 33.25057

Coefficients
Standard Error
Intercept -16.0322 5.310167
X Variable 1 0.03076 0.006158
 y=B1+ B2X1+Ui
= -16 +0.03 + u1
SUMMARY OUTPUT
ADJ R2 = 0.63 , r2= 65

Regression Statistics
Multiple R 0.81083
R Square 0.65744528
Adjusted R 0.63109492
Standard E 0.93603668
Observatio 15

ANOVA
MS F Significance F df SS MS
21.86043 24.95014 0.000245 Regression 1 21.8604326 21.860433
0.876165 Residual 13 11.3901407 0.8761647
Total 14 33.2505733

t Stat P-value Lower 95%Upper 95%

Lower 95.0%
Upper 95.0% CoefficientsStandard Error t Stat
-3.01915 0.009869 -27.5041 -4.56028 -27.5041 -4.56028 Intercept -16.032194 5.31016709 -3.01915
4.995012 0.000245 0.017456 0.044064 0.017456 0.044064 X Variable 0.03076023 0.00615819 4.9950117

RESIDUAL OUTPUT

ObservationPredicted Y Residuals subs

1 8.39 0.94
2 8.55 -0.29 -1.22
3 9.71 -2.23 -1.95
4 10.27 -1.19 1.05
5 9.96 -0.13 1.06
6 9.93 0.16 0.29
7 10.51 0.50 0.34
8 10.88 0.61 0.11
9 11.04 1.03 0.43
10 11.81 0.74 -0.29
11 11.22 0.70 -0.05
12 9.90 0.37 -0.33
13 11.78 0.02 -0.35
14 13.19 -1.04 -1.06
15 9.84 -0.20 0.84
 F Significance F
24.950142 0.000245

P-value Lower 95%Upper 95%

Lower 95.0%
Upper 95.0%
0.0098686 -27.5041 -4.56028 -27.5041 -4.56028
0.0002451 0.017456 0.044064 0.017456 0.044064

squareresiduals square
0.88
1.50 0.08
3.80 4.99
1.09 1.41
1.12 0.02
0.08 0.03
0.11 0.25
0.01 0.37
0.18 1.07
0.08 0.55
0.00 0.49
0.11 0.14
0.12 0.00
1.13 1.08
0.71 0.04
10.06 11.39 0.883003
 X Variable 1 Residual Plot
1.50

1.00

0.50

0.00
780 800 820 840 860 880 900 920

Residuals
-0.50

-1.00

-1.50

-2.00

-2.50
X Variable 1
dual Plot

880 900 920 940 960

able 1