MANAGERIAL ECONOMICS

ASSIGNMENT#4
Atlas Honda (Pakistan) Limited
RESULTS AND ANALYSIS

Data:

Variables and limitations.

In our data the dependent variable is sales and the independent variables are Marketing, Human
Resource and CSR. Where the Time is also conducted as an independent variable. In this data the
time period is considered as annually which is from 2008 to 2017.

1. Descriptive Analysis:
Interpretation:
The descriptive analysis shows the descriptive statistics like maxima, minima, mean and standard
deviation. The standard deviation of sales is closer to the minima which shows there is less
chances of error. Also the standard deviation of HR and Marketing is closer to their minima
value so, there is also less chances of error.However the standard deviation of CSR is not closer
to its minima which shows there can be chances of error.

2. Regression Analysis:

A)

l
Interpretation:
In this regression analysis, the dependent variable is sales and independent variables are HR,
Marketing and CSR. The model summary shows the value of R Square is .966 which is greater
than the threshold .50 so it is significant. The df value is 3 and the F stats shows the value of
57.165 which is also significant. The relation between HR and sales is positive and has the beta
value of .108 which shows that the 1 unit change in HR will bring .108 units increase in sales
and the value of t is 2.476 which is greater than 1.96 therefore the relation is significant. On the
other hand the Marketing also has the positive relation with sales and the beta value is .007
which shows that 1 unit increase in Marketing cause .006 unit increase in sales and the t value is
.252 which is also insignificant. Also, the relation between CSR and sales is positive and has the
beta value of 1.546 which shows that the 1 unit change in CSR will bring 1.546 units increase in
sales and the value of t is .671 which is greater than 1.96 therefore the relation is significant.

Regression Line:
Y= -5486.909+.007+.108+1.546
(.252) (2.476)(.671)
B)

Interpretation:
This regression is conducted with the time. The value of R Square is .840 which is greater than .5
so it is significant. In this regression the time has the direct relation with sales and has the beta
value of 4781.515 which shows that 1 unit change in time will bring 4781.515 unit change in
sales the t value is 6.479 which is also significant.
Regression Line:
Y=3044.267+4781.515
(6.479)

3. Sales Forecasting:

Forecasting
Fluctuation
Interpretation
In sales forecasting we compute first the forecasting and then the fluctuation. In forecasting we
use the regression equation to compute and by dividing actual sales by forecasting we get the
fluctuation. In this data there is irregular or cyclicvariation becausein the years 2008,2009,2014
and 2017,there is no fluctuation but in the other years fluctuation occur so we can say that there
is an irrregularor cyclic variation. We will go for smoothing techniques i-e moving average or
exponential smoothing to reduce or eliminate volatility in data.

Annex: