Bivariate Regression Analysis

Group -1

Abhijeet Dash UM14001Abinash Mallick UM14004 Esha Epsita UM14024 G.Tarakeshwar UM14025 Krishna K. Sahoo UM14029 Kundan Mohapatra UM14032Nitika Baralia UM14036P.Goutam Prasad Rao UM14037Padmalaya Mallick UM14038Sukanya Dash UM14056

Assigment-2

Objective: To find the relationship between coal

production and electricity generation in India

Apriori reasoning: Thermal energy is a major

source of electricity generation. It contributes about 60% to the total electricity generation in India. The other sources being Hydro, Wind, Nuclear, Solar and Tidal.

Hypothesis

Ho: There exists no relation between Electricity generation and coal production in India.

H1: There is a relation between Electricity generation and coal production in India.

Dependent Variable: Electricity generation

Independent Variable: Coal production

Source of Data:http://www.bp.com/statisticalreview

Data and Results

The file contains the source Data which is needed for analysis ---

Results of SPSS Linear regression models -------------------

Analysis Table of All Models

Equation Alpha Beta1 Beta2 Beta3 R Squared

Simple Linear 1.36E-25 0.993 0.986

Linear Trend 1.87E-22 0.988 0.975

Log-linear 7.27E-25 0.992 0.984

Semi-log 1.71E-26 0.994 0.988

Quadratic 3.25E-24 1.174 -0.184 0.987

Cubic 1.12E-22 1.06 0.072 -0.145 0.987

Interpretation of the Results

As per the regression results, R square value for the semi-log model is the highest, however we can see close R-square value for Log Linear, Cubic, Quadratic and Linear model as well. Hence we can say that this model explains the relationship between independent and dependent variables.

As R square value is very high and, the significance value is nearly 0 which is less than 5% (taken as default), we can reject the null hypothesis stating that there is a relationship between the coal production and electricity generation.

Considering the above models it is clear that the semi-log model has a better explanatory power

Conclusion

Hence, the semi-log model best explains our alternate hypothesis that electricity generation is co-related to coal production in India.

Thank you