MANUFACTURER

DATABASE

Steps:
1. Click ANALYZE
2. Click Regression, then click Linear. A Linear Regression
Window will appear
3. Put Cost of Materials (COM) in the Dependent Variable
4. Then put Number of Employees (NoEmp), New Capital
Expenditures (NewCAPE), Value Added by Manufacture (VAMfg),
Value of Industry Shipments (VIS), and End-of-Year Inventories
(EoYI) in the Independent Variable
5. Change the Method to: STEPWISE
6. Click Statistics then click the boxes beside Descriptives,
Durbin-Watson and click Continue
7. After clicking Continue, you will be back in the Linear
Regression Window. Click Plots, put *ZPRED in the Y box,
and put *ZRESID in the X box. Click the boxes beside the
Histogram and Normal Probability Plot then click Continue
8. Back in the Linear Regression Window click OK
***The Output (Answer) in SPO/SPSS will be attached in another file.

MANUFACTURER
DATABASE
The Step-Wise method retained the Value of Industry Shipments, Value Added by Manufacture, and End
of Year Inventories as the variables that are significant.
There appears to be a problem of multicollinearity in this analysis.

The correlation (R) displays a perfect 1 which is too good to be true.

Sir, discussed about Durbin-Watson but wala ko kasabot (sorry po ) attached is another file about
Durbin-Watson

MANUFACTURER
DATABASE

- As shown in the graph, they are not aligned

- Scatterplot shows extremes
- These are symptoms of multicollinearity
- Multicollinearity: is a phenomenon in which two or more predictor variables in a multiple regression
model are highly correlated.
(Displaying 1.000, too good to be true)
- The cause of this is may be, that the variables taken were not the right variables

HOSPITAL DATABASE (The Same Process)

Steps:
1. Click ANALYZE
2. Click Regression, then click Linear. A Linear Regression
Window will appear
3. Put Personnel in the Dependent Variable
4. Then put Control, Service, Beds, Admissions, Census,
Outpatients, and Births in the Independent Variable
5. Change the Method to: STEPWISE
6. Click Statistics then click the boxes beside Descriptives,
Durbin-Watson and click Continue
7. After clicking Continue, you will be back in the Linear
Regression Window. Click Plots, put *ZPRED in the Y box,
and put *ZRESID in the X box. Click the boxes beside the
Histogram and Normal Probability Plot then click Continue
8. Back in the Linear Regression Window click OK
***The Output (Answer) in SPO/SPSS will be attached in another file.

HOSIPITAL DATABASE
The Step-Wise method retained the Admissions, Beds, Outpatients, and Births as the variables that are
significant.

The correlation (R) displays a very high correlation.

HOSPITAL DATABASE

- They are not aligned but closer with the line which makes this acceptable
- Scatterplot is acceptable as well
- The results show that the Dependent Variable has high correlation with the Independent Variables

FINANCIAL DATABASE (The Same Process) (The same with the

previous problem, this also displays multicollinearity)
Steps:
1. Click ANALYZE
2. Click Regression, then click Linear. A Linear Regression
Window will appear
3. Put Average P/E Ratio in the Dependent Variable
4. Then put Total Revenues, Total Assets, Return on Equity,
Earnings per Share, Average Yield, and Dividends per Share in
the Independent Variable
5. Change the Method to: STEPWISE
6. Click Statistics then click the boxes beside Descriptives,
Durbin-Watson and click Continue
7. After clicking Continue, you will be back in the Linear
Regression Window. Click Plots, put *ZPRED in the Y box,
and put *ZRESID in the X box. Click the boxes beside the
Histogram and Normal Probability Plot then click Continue
8. Back in the Linear Regression Window click OK
***The Output (Answer) in SPO/SPSS will be attached in another file.

FINANCIAL DATABASE
The Step-Wise method retained only Earnings Per Share .

FINANCIAL DATABASE

- Histogram shows skewness skewed to the left

FINANCIAL DATABASE

- Scatterplot shows extremes (the three plots); Histogram also shows skewness. The extreme is the
Earnings per Share which shows it being significant at 0.003 (kindly see the Financial Output File)
- Earnings per Share is a factor that can significantly predict the Dependent variable which is the
companys average P/E ratio

Additional slide on Financial Database

problem
Do not mind muna the T-Test and Anova portion. Not connected with the financial
database problem. T-Test and Anova will be in the next slides

Keywords in problems:
Is there a significant relationship between X and Y if it asks about relationship, use
Pearsons R
Which attribute of X can significantly predict/influence it the keywords are predict or
influence, use Regression
Is there a significant difference between X and Y when grouped according to sex? if it
asks about the difference and there are two variables involved (sex Male and Female), use
the T-Test
Is there a significant difference between X and Y when grouped into year level? if it asks
about the difference and there are three or more variable involved (year level), use ANOVA

Whole picture though

Thank you