4th ASSIGNMENT OF WORKSHOP ON SPSS

Submitted To:Mr. Harik Das Gupta

Submitted By:Anuj kumar giri Reg. No 10800033 Sec Q2R02

Q1. File:US;Develop a multiple regression model to estimate gross personal savings using as many available variables as you see fit. Solution: I have taken the Gross personal saving GPS as a dependent variable whereas in independent variable is Aggregate personal income (APC), Aggregate personal consumption (APC) and Gross Domestic Product.

Variables Entered/Removedb Variables Model 1 Entered Gross domestic product (billions), Aggregate personal consumption (billions), Aggregate personal income (billions)a a. All requested variables entered. b. Dependent Variable: Gross personal savings (billions) . Enter Variables Removed Method

Coefficientsa Standardized Unstandardized Coefficients Model 1 (Constant) Aggregate personal income (billions) Aggregate personal consumption (billions) Gross domestic product (billions) B 11.359 .185 Std. Error 22.232 .118 5.999 Coefficients Beta t .511 1.569 Sig. .612 .125

-.855

.102

-23.019

-8.412

.000

.453

.125

17.370

3.611

.001

a. Dependent Variable: Gross personal savings (billions)

Model Summary Adjusted R Model 1 R .844a R Square .712 Square .689 Std. Error of the Estimate 51.3844

a. Predictors: (Constant), Gross domestic product (billions), Aggregate personal consumption (billions), Aggregate personal income (billions)

This table provides the R and R2 value. The R value is 0.844, which represents the simple correlation and, therefore, indicates a high degree of correlation. The R2 value indicates how much of the dependent variable Gross personal saving (GPS), can be explained by the independent variable APC, API & GDP. In this case, 71.2% can be explained, which is very large.
ANOVAb Model 1 Regression Residual Total Sum of Squares 241657.376 97693.008 339350.384 df 3 37 40 Mean Square 80552.459 2640.352 F 30.508 Sig. .000a

a. Predictors: (Constant), Gross domestic product (billions), Aggregate personal consumption (billions), Aggregate personal income (billions) b. Dependent Variable: Gross personal savings (billions)

This table indicates that the regression model predicts the outcome variable significantly well. Lets look at the "Regression" row and go to the Sig. column. This indicates the statistical significance of the regression model that was applied. Here, P < 0.000 which is less than 0.05 and indicates that, overall, the model applied is significantly good enough in predicting the outcome variable.

INTERPREATATION

From the above fig. the regression coefficients are: b0= 11.359, b1= .185, b2 = -.855, b3 = .453

So, multiple regression equation can expressed as Y = b0+b1x1+b2x2+b3x3 Or, Or, Y = 11.359 + .185x1 - .855x2 + .453x3 GPS = 11.359 + .185 (API) - .855 (APC) + .453 (GDP)

The sample y intercept b0 is computed as 11.359. b1 is the slope of Y with independent variable x1 holding variable x2 constant . That is b1 is slope of GPS (Y) with independent variable API (x1). On the basis of regression model developed, the predicted API (Aggregate personal income) is 555.7 (bln.) and APC (Aggregate personal consumption) is 443.8 and GDP (Gross domestic product) is 719.1 Y = 11.359 + .185x1 - .855x2 + .453x3 = 11.359 + .185 x 555.7 - .855 x 443.8 719.1 = 60.4618 (GPS) Therefore when the Aggregate personal income (API) is 555.7 (bln.), and APC (Aggregate personal consumption) is 443.8 and GDP (Gross domestic product) is 719.1. The gross personal saving is predicted to Rs. 60.4618 billion.

Hypothesis
1. The level of significance is 0.125 in coefficient of correlation which is > 0.05. So, the

hypothesis will be accepted. It means the aggregate personal income affect gross personal saving. 2. The level of significance is 0.00 in aggregate personal consumption which is <0.05. So, the hypothesis will be rejected. It means there is not significant relationship between the GPS and the APC
3. The level of significance is 0.01 in Gross domestic product which is less the 0.05. So, the

hypothesis will be rejected. Hence the GDP is not significant between the two variable.