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ECONOMETRIC
PROJECT-Econ325
BY- ADITYA PURKAYASTHA
BBE
A060114120016
INTRODUCTION The purpose of this project is to prove the
Bivariate regression model with the help of 2
variables.
Here,
Independent Variable- Pocket money of
college students
Dependent Variable- amount spent on
stationary
These factors will assist in studying school and
college students’ the relation between the
amount spent by them on stationary items and
the amount of money they get as pocket
money.
OBJECTIVE To find the relationship between two variables
based on the collected data of college going
students. The population for the data collection
is school and college going students with the
sample being students of amity university
noida and various . The main objective is to
find the amount of their pocket moneys which
is spent on purchasing stationary.
To find the equation for the best possible
straight line that defines the relationship
between two variables based on the collected
data sets.
METHODOLOGY ● As for the data collection, primary
data will be collected from 25
individuals by using google forms
survey.
● A total of 2 questions were asked to
perform the assessment of saving
behaviour of college students.
● To perform the assessment, I’ll be
using Excel and Stata.
HYPOTHESIS Null Hypothesis (H0): There is no
significant relationship between the
amount of pocket money one gets and
how much he/she spends on stationary.
Alternative Hypothesis (H1): There is a
significant relationship between the
amount of pocket money one gets and
how much he/she spends on stationary.
REGRESSION TABLE
SCATTER DIAGRAM
Data
T-TEST ● FOR β1,
● Tcalculated= -0.76
● Tcritical= 1.711
● Tcalculated < Tcritical
● Therefore, the null hypothesis is ACCEPTED
● FOR β1,
● Tcalculated= 5.94
● Tcritical= 1.711
● Tcalculated > Tcritical
● Therefore, the null hypothesis is REJECTED
INTERPRETATION In the above case, calculated t is more
than critical t. Therefore we reject the
null hypothesis and accept the
alternative hypothesis. This proves
that there is a significant relationship
between both.
REFERENCES 1. Gujarathi, D. M. (2022). Gujarati: Basic
Econometrics. McGraw-hill.
2. Wainwright, K. (2005). Fundamental
methods of mathematical economics.
Boston, Mass. McGraw-Hill/Irwin.
3. Johnston, J., & DiNardo, J. (1963).
Econometric methods.
ECONOMETRIC PROJECT-Econ325 [Autosaved].pptx

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ECONOMETRIC PROJECT-Econ325 [Autosaved].pptx

  • 2. INTRODUCTION The purpose of this project is to prove the Bivariate regression model with the help of 2 variables. Here, Independent Variable- Pocket money of college students Dependent Variable- amount spent on stationary These factors will assist in studying school and college students’ the relation between the amount spent by them on stationary items and the amount of money they get as pocket money.
  • 3. OBJECTIVE To find the relationship between two variables based on the collected data of college going students. The population for the data collection is school and college going students with the sample being students of amity university noida and various . The main objective is to find the amount of their pocket moneys which is spent on purchasing stationary. To find the equation for the best possible straight line that defines the relationship between two variables based on the collected data sets.
  • 4. METHODOLOGY ● As for the data collection, primary data will be collected from 25 individuals by using google forms survey. ● A total of 2 questions were asked to perform the assessment of saving behaviour of college students. ● To perform the assessment, I’ll be using Excel and Stata.
  • 5. HYPOTHESIS Null Hypothesis (H0): There is no significant relationship between the amount of pocket money one gets and how much he/she spends on stationary. Alternative Hypothesis (H1): There is a significant relationship between the amount of pocket money one gets and how much he/she spends on stationary.
  • 9. T-TEST ● FOR β1, ● Tcalculated= -0.76 ● Tcritical= 1.711 ● Tcalculated < Tcritical ● Therefore, the null hypothesis is ACCEPTED ● FOR β1, ● Tcalculated= 5.94 ● Tcritical= 1.711 ● Tcalculated > Tcritical ● Therefore, the null hypothesis is REJECTED
  • 10. INTERPRETATION In the above case, calculated t is more than critical t. Therefore we reject the null hypothesis and accept the alternative hypothesis. This proves that there is a significant relationship between both.
  • 11. REFERENCES 1. Gujarathi, D. M. (2022). Gujarati: Basic Econometrics. McGraw-hill. 2. Wainwright, K. (2005). Fundamental methods of mathematical economics. Boston, Mass. McGraw-Hill/Irwin. 3. Johnston, J., & DiNardo, J. (1963). Econometric methods.