Econometrics Analysis on the Monthly Income Generated From Sales of Legend Guilder, and Maltina Drinks in Nigeria (a Case Study of Nigeria Breweries Plc)
CHAPTER ONE
AIMS AND OBJECTIVES
The aim and objective of this project is to show the rate at which the general public is lovely interested in purchasing alcoholic and Maltina drinks.
- To determine comparism between the independent variable and dependent variable
- To know the types of relationship that exists between the independent and dependent variable.
- To calculate the parameter of the econometrics model and test their significance.
- To derive the equation that can be used to predict the sales
- To forecast the factors value of the variable of the model
CHAPTER TWO
LITERATURE REVIEW
Statistics is concern with scientific method of collecting summarizing, analyzing interpreting and presentation of data as well as drawing research conclusion and making valuable decision of the basis of such analysis. The fact of life like business administration economics, agriculture, political science and applied and social science.
The two major areas of applied practical statistics are design and analysis of experiment which is employed when information needed to carry out an investigation like time, money scope and limited. Economics of statistics data is another aspect of applied practical statistics whose application is employed in the area of statistical forecasting or take to make inference or prediction about future. The analysis of econometrics of the most important technique of makings inference about the basic of what has happen in the past. Econometrics is strongly identified with regression analysis and it recognize the useful roles of regression co-efficient in establishing the strength of their relationship between one department.
Jurray R.S. and Larry J.S (1999) in his book outline statistics that econometric relationship perhaps postulated by an abstract of economics and statistics both pre-supposing as substantial degree of mathematical sophistication, however now concluded that to practice econometric completely, one has to be well versed in both economics and statistical theory. In econometrics work it is necessary to deal with a number of relations simultaneously, thus we typically have an econometrics model contains two or more equation such a system may be simultaneously determined in the sense that determined simultaneously the behaviours of the entire set of dependent variable.
Frank and Althoen define econometrics as a social science that deals with combination of economics theory, mathematics and statistical analysis used in obtaining numerical data from period. Econometrics is simply defined as the statistical measurement economics.
According to Oyeniyi T.A econometrics deals with the measurement of economics relationship, economics means economic measurement. The term econometric is formed from two Greek words “ OI,KOVOULA” and “VETPOV” which means “ECONOMY AND MEASUREMENT” respectively.
It is the combination of mathematics econometrics, statistics, economic statistics mathematics and economic theory.
Econometrics can also be define as a branch of economic that deal with the quantitative analysis of economics as a set of definitions and assumption that can also use to explain certain type of economic affect.
We can also define econometric as a statistics tools and mathematical analysis of economic relationship between two or more variable that can be used in predicting future event.
According to M.Y Omotosho (2000) econometric is the application of statistical techniques on a mathematical model of an economic data to estimate it’s parameter and draw statistical inference on the parameters to facilitate correct decision on economics phenomena. It is concerned with economic relationship.
A Konutsoyiannis (1992) define econometrics as the combination of economic theory, mathematical economics and statistics but completely distinct from each of the branch of science.
J.K Olayemi (1998) in his back titled element of applied econometric defines econometrics as a branch of science which applied the tools of statistics and mathematic to the analysis of economics phenomenon and gives a quantity of expression to economic theory.
Econometrics has been considered a highly specialized tools of research. Its rapid growth and measuring use in economic planning and research require its social scientist. The comprehensive nature of the benefits of the econometrics can be linked to its root in mathematics statistics, economics and computer science. The primary purpose is to give the empirical contends it has acquired from root economic theory.
Econometrics differs from statistics alone in other field since controlled experiment are often impractical, so econometrics has to frequently deal with data as it is.
Also the most important tools of econometric are regression analysis which shown the nature of relationship that exist between two or more variable.
Regression analysis is produce by which an algebraic equation is formulated to estimate the value of a continuous random variable given the values of another quantitative variable. The variable for which the value is estimated is called dependent variable while the variable used as basis for the estimate is called independent variable. When there is only one independent variable in the regression equation, we have a simple regression but when we have more than two or more variables we have to employ multiple regression analysis.
CHAPTER THREE
RESEARCH METHODOLOGY
Research can classified as the specification of procedures for collecting and analyzing the data necessary to solve problem at hand such the difference between the cost of obtaining various level of accuracy and the expected value of information associate with each level of accuracy is maximized.
According to Adebile (2001). Research is the process of getting to dependable solution to problems through a planed and systematic analysis and interpretation of data.
CHAPTER FOUR
PRESENTATION OF DATA AND ANALYSIS
TOTAL INCOME GENERATION BETWEEN THE YEAR 2005 – 2009 PER MILLION (IN NAIRA)
TABLE: DATA FOR YEAR 2005 – 2009
CHAPTER FIVE
RESULT, SUMMARY, RECOMMENDATION AND CONCLUSION
SUMMARY OF FINDINGS
The assumption for multicollinearity by using Farah-Glauba test and chi-square test to test for the presence of multcollinearity and there is no multicollinearity problem.
Also for Hetroscedastiocity by using Goldfield and Quandt test to test whether the disturbance variance is constant at each observation point or not.
The disturbance variance are not heteroscedaticity but homoscadasticity and for autrocorrelation by using Durbin watson test closer to 2 than 1, hence, this implies that there is no autocorrelation.
All the test above show that feature of an econometric data analyzed through an econometric techniques.
After all the receiving statistical analysis have been carried out in the model Y = 1064.837 +1.016449X1+1.769546X2+2.890084E-02X3 looking at the estimated regression parameter β1, β2, β3 are positive coefficient. This means that β1, β2, β3 are contribute to the total income generated from stout, Guilder and Maltina drinks in Nigeria Breweries company Plc.
In other word there is relationship between the total income on stout Guilder and Maltina drinks in Nigeria breweries plc.
While β1, β2, β3 are contributing partively to the total income because of the positive value.
CONCLUSION
The main objective of this research work is to know which of the explanation variable have effect most in the total income of stout, Guilder and maltina drinks in Nigeria breweries company Plc. From the result of the analysis, it is obvious that there is direct relationship among the total income and stout, Guilder and maltina drinks since the coefficient is positive F – test show that all the independent variable have effect on total income generated from Nigeria breweries company plc.
REFERENCES
- Adebile O.A. (2001): Statistical Method in Research for Applied and Behaviour Science, Published by Mactop Prints, Osogbo, Osun State.
- Aigner D.J. (1996): Basic Econometric Practice Hall Englewood Cliffs Nig.
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- Frank & Althoen (1994): Statistic Concept and Application: Great Britain Cambridge University Press.
- John E.H & A.G Reitsch (1991): Understanding Business Statistics: Richard D. Irwin, Boston U.S.A.
- Juray R.S. & Larry J.S. (1999): Schavin’s Outline Statistics, 3rd Edition: Mc Graw Hill USA.
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