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Computer and Statistical Analysis ASSIGNMENT 1

The document outlines an assignment for a course on Computer and Statistical Analysis, focusing on the impact of bread prices and advertising on sales in supermarkets. It includes tasks such as variable identification, data preparation in Stata, generating descriptive statistics, running regression analysis, and providing managerial recommendations. The assignment requires submission of the completed work along with Stata files.

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vimbaichiri
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16 views

Computer and Statistical Analysis ASSIGNMENT 1

The document outlines an assignment for a course on Computer and Statistical Analysis, focusing on the impact of bread prices and advertising on sales in supermarkets. It includes tasks such as variable identification, data preparation in Stata, generating descriptive statistics, running regression analysis, and providing managerial recommendations. The assignment requires submission of the completed work along with Stata files.

Uploaded by

vimbaichiri
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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AFRICA UNIVERSITY

College of Business and Management Sciences


Department of Accounting and Finance

Course: Computer and Statistical Analysis (Economic Analysis Software)


Course Code: NMEC209
Lecturer: Mr. T. Zibizapanzi
Assignment: 1
As an economist at a large supermarket, you have been tasked with investigating how bread prices and
advertising expenditure influence bread sales across a sample of 45 shops. After collecting the relevant
data, please address the following:
(a) Variable Identification
1. Identify the dependent variable and independent variables in the study. (2 Marks)
(b) Data Preparation in Stata
1. Import the dataset into Stata and perform the following tasks: (5 Marks)
i. Rename the variable sales to y.
ii. Rename the variable prices to x1.
iii. Rename the variable advertising to x2.
iv. Label y as bread sales.
v. Label x1 as bread prices.
vi. Label x2 as advertising expenditure.
(c) Descriptive Statistics (2 Marks)
1. Generate and present the descriptive statistics for the dataset.
(d) Regression Equation (2 Marks)
1. Formulate the regression equation using the variables y, x1, and x2.
(e) Regression Analysis (15 Marks)
1. Run the regression model and interpret the following results:
i. R-squared: What does it indicate about the model's explanatory power?
ii. Confidence intervals: What do these intervals suggest about the estimated parameters?
iii. T-statistic: How does it relate to the significance of the predictors?
iv. P-value: What does it reveal about the statistical significance of the predictors?
v. Coefficients for x1 and x2: What do these coefficients imply about the relationships
between the variables?
vi. Confidence intervals for the coefficients.
vii. F-statistic: What does it indicate about the overall model fit?
(f) Regression Equation with Estimated Parameters (2 Marks)
1. Using the estimated parameters B0​, B1, and B2​ from the model, write out the complete regression
equation.
(g) Predicted Sales Volume (6 marks)
1. Calculate the predicted volume of sales for the following scenarios:
o i. When Price = $0.50 and Advertising Expenditure = $400.
o ii. When Price = $2.00 and Advertising Expenditure = $150.
(h) Managerial Recommendations (6 marks)
1. Based on the results of the model, provide actionable recommendations for the supermarket
manager regarding pricing strategies and advertising expenditure to maximize bread sales.

TOTAL (40 MARKS)

NB: You are required to submit your assignment together with your Stata Do file and Logfile.

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