Select a topic of interest :
Identify an industry that you have covered in your MG 615 (Managing in the Global Environment). An industry could be one of the following (these are just examples):
a) Pet Industry
b) Transportation Industry
c) Pharmaceutical Industry
d) Merchandizing Industry
e) An example of a topic which could be supported by primary data is the relationship of the cost of tuition to other variables such as income, GPA, etc.
For a project, whose topic is about a specific industry, customarily the industry annual sales will be designated as the dependent variable.
In other words, establish whether a causal relationship exists between industry sales and the explanatory variable; is the relationship positive or negative? Once you have identified the theoretical relationship, collect your data and then test your hypothesis. This is the first stage of the DCOVA; defining your goal or objective of your study or to define your variable of interest: STATE YOUR HYPOTHESIS.
Once you have defined the dependent and independent variables, provide a brief explanation as to how the explanatory variable influences the industry sales. Choose 2 variables to observe: 1) Industry sales and 2) Only one explanatory variable.
For each variable, collect data points for the past 25 years. How do you plan to collect the data: This is the second stage of data collection? Use Secondary data. A questionnaire is not needed for this project.
Required: Organize, Visualize and Analyze your data as shown below:
1. For the dependent variable compute Mean, Standard Deviation and construct a Pie Chart.
2. Construct a frequency distribution for your variable
3. Graphically depict your data using other methods studied (scatter plot/trend line/ histogram/pie chart).
4. Establish your hypothesis; that is the expected sign(s) between the dependent and independent variables. After you have established the various hypotheses, narrow down your research to only one hypothesis.
5. Run an OLS regression to test the significance of the theoretical signs expected
– What is the Y-intercept
– Compute the slope
– R square
– Is the explanatory variable significant at the 5% level? That is, what is the “t” value?
– Estimate the regression equation and graphically show the regression line
– Compute the p-value
6. Comments/Discussion on your results – this is important so think carefully and write. Discuss your hypothesis testing results.
