ASA University Bangladesh

Program: BBA

- Assignment on-

Socio Economic Condition of ASAUBs

Student.
Course Title: Applied Statistics
Course Code: Math 201

Submitted to:
Md. Ashraful Alam
Lecturer
Faculty of Business
ASA University Bangladesh

Submitted by:
ID
071-12-214
071-12-211
071-12-218
071-12-198
071-12-200

Name
Md. Fokrul Hasan Bhuiya
Nahid Raja
Md. Saruwar Hossain
Md. Rakibul Hasan
Md. Shahidul Islam

Sec
C
C
C
C
C

Batch
1st
1st
1st
1st
1st

Date of Submission: 02/12/08

Mark

Date: December 23, 2008

To
Sheikh Mohammad Sayem
Lecturer
ASA University Bangladesh
Shyamoly, Dhaka-1215.
Subject: Application for submitting the term paper.
Sir,
Here is the term paper we have assigned for Applied Statistics(Math-202) as a
partial requirement of the course. The topic of the term paper is Socio Economic
Condition of ASAUBs Studens.
We have collected reliable information from thee cluster data. Then we tried to
identify the over all economic condition of ASAUBs student in different point of
view.
We would like to thank you for giving us the opportunity for allowing us to work
on such topic and for your constant guidance and support.

Sincerely yours
Md. Fokrul Hasan Bhuiya
Nahid Raja
Md. Saruwar Hossain
Md. Rakibul Hasan
Md. Shahidul Islam

Chapter-1
Introduction
We know that Bangladesh is in the member of third world. Bangladesh is the
development country. The economic condition of the country is very law. The per
income of the people is not satisfactory at all. Now we are going to research about
the economic condition of the people. But it is impossible to collect information from
every people of Bangladesh. Thats why we collect information from some of the
people as sample project. For this reason, we select the ASA University to survey
over the students for researching the economic condition level of the students of the
private University. We know that ASA University is the higher Middle Classes
University of Bangladesh. Here most o f the students are belonging from higher
middle classes family. In this University some of the students are studying with
100% waiver tuition fees, because of the obtaining good result in H.S.C. In the time
of researching, we find that the students of the ASA University come from the higher
middle classes. In the next port of the assignment we try to show the economic
condition level of the students.

Motivation
Any comprehensive work, such as this term papers we credit to a multitude of
people. Certainly, we should acknowledge the contribution of the pioneer persons
who are directly or indirectly helps to prepare or accomplish this term paper.
Specially we can give think to pour course coordinator Sheikh Mohammed
Sayem who is giving some important instruction or indication for making this
assignment. Obviously, it should be our proper instruction to accomplish this task.
Actually, everything is not prepared accurately without the helping of anyone.
Although it is prepared by without helping of anyone but can not extremely
acceptance in the modern work. Actually when we are faced some problem, at this
time, we are taking best help from him about this term paper. Most probably our
class teacher possesses a frankly manner with us which is very helpful to make this
task.

Objectives
The primary objective of this task is to analyze the socio economic condition of ASA
University students. So the main objectives of this study are given below:
1)
2)
3)
4)
5)
6)
7)

Method used in calculating socio economic condition.

Differentiate the students economic conditions.
To know about the Regression Analysis.
To know about the coefficient of multiple determination.
To know about the Global test.
To find out the students economic condition.
To know about the dependent variable and independent variable.

Limitation
In preparing this assignment, we need some fractural information that have some
limitations in making our assignment. Actually the limitation varies some reason.
The main reason is that first time; our group member was not mostly attentive
about this assignment. At the last moment we are started our workings. The
informers were not so friendly. They can not provide all of the information
correctly. First of all, they are not agreeing to describe their economic condition. It
is also informed that the time is so little. But at the eleventh hours, all we are doing
this task heart and soul. In fact, it is not effective for us. On the other hand, when we
are making this assignment, we have encountered scarcity of Lab. In spite of this
condition, we tried to prepare the assignment with in a short time and try to show
ourselves the best.

Data collection
We have followed two ways to collect the data and information. These data are
collected from various sources. These are:
1. primary data collection and
2. Secondary data collection.

Primary Data:
Primary data means collect data from the informer directly. We collect data from
the student of various section of the ASA University Bangladesh. The students are so
flexible to provide data to us. We also gather knowledge about this. We also seek
many books to write about this assignment. Most probably, we searched many sorts
of renowned writers books.

Chapter-2

Literature Review
Regression Analysis:
In preparing this assignment, we use regression model or analysis to find the
answers. Now we are going to discuss something about the Regression analyses that
are given below:
The Regression analysis is a technique of analyzing or studying the dependence of
the one variable on one or more variables. With a view to estimating or predicting
the population mean or average value of forms in terms of the known or fixed values
of the letter.
For instance, economic condition mainly depends on income, expense and education
etc.

Multiple Regression Analysis:

A statistical process by which several variable are used to predict another variables.

Multiple Regression Model:

Y 0 1 1 2 2 ....... . Where, Y is the response or dependent
variable. 0 , 1,............ are K regression coefficient which are called parameters.

Assume that, ~N ( 0, 2 )

Multiple Regression Equation:

( ) 0 1 1 2 2 ........

Fitted or estimated multiple Regression Equation:

1 1 1 2 2 ......... k k

Where b0 is the intersect, the value of Y when all the s one Zero.

b j is the amount by which Y changes when the particular j increases by one unit

with all other values hold the same. The subscript j can assume values between 1
and k which is the number of independent variable.

Least Squares Method:

This method used to develop the estimated regression equation. If minimizes the
sum of squared residuals. The population multiple regression modeli 0 1 1i 2 2i ........ i Ei

Coefficient of Variance:
For its observation, the difference between the observed value of the dependent
i , is called its residual. The its residual represents the error in using
i,
variable.
i . The sum of squares
to estimate i . Thus, for its observation, the residual is i -
of these residuals or error is the quantity that is minimized by the least square
method. Thus quantity also known as the sum of square due to error is denoted by
SSE.
i)2
SSE= ( i -

Correlation Coefficient:
We presented the equation for computing the sample correlation coefficient. If a
regression analysis has already been performed and the coefficient of determination
r 2 has been computed the sample correlation coefficient can be computed as
follows:
Sample Correlation Coefficient,
R= coefficientofDeter min ation
= r2

t- Test:

the simple linear regression model is y 0 1 E . If x and y are linearly model

related. We must have 1 0. The purpose of the t-test is to see whether we can
conclude that 1 0 . we will use the sample data to test the following hypothesis
about the parameter .
0 : 1 0
a : 1 0

we reject the 0 if 1 1 or .

Closeness of fit in multiple regressions:

The multiple regression models is,
i

1 2 2 i 3 3i ........ i Ei

under the assumption of classical linear regression model by using ordinary least
square(OLS) method, the fitted regression equation is i b1 b 2 i b3 3i ........ b i

Analysis of variance (ANOVA):

Analysis of variance is the process of partitioning and
decomposing the total variance contained in the data set into different components
each of which is attributed to an identifiable cause or sources of variation and a
further component due to chance factor. Here,
SST = SSE+SSR
Where,

SST = Sum of square of total =

2
SSE = Explained sum of square =
i
2

SSR = Residual sum of square = ei

Coefficient of multiple determination R 2 :
R2 =

Explained sum of square_

Total sum of square

100

Comment:R 2 measure the proportion of percentage of the total variance in independent

variable explained by the regression model, 0 < R 2 < 1

The adjust R 2 :
A measure of the goodness of fit of the estimated multiple
regression equation that adjusts for the number of independent variables in the
model and independent variables.

R2 =1-

SSR
nk

F test of Global test:Testing the multiple regression models:-

The hypothesis is , H 0 : All the true regression coefficient are Zero

H a : At least one of the coefficients is not Zero

Source

Sum of square

Regression

D.F

SSE

Mean square
MSSE = SSE

F
F=

MSSE
MSSR

Error
At

SSR

n-k-1

MSSR = SSR

n k 1

level of significance F , k, n-k-1 is the critical value under the null

hypothesis, the test statistic, F =

Rejection rule: If

MSSE
MSSR

F F , k , n k 1

, then H 0 is rejected.

These are about the regression analysis which topics are related with our
assignment.

Chapter 3

Statistical Analysis
In this chapter, we are going to discuss about statistical analysis. In fact, in statistical
analysis, we try to explain Descriptive, Regression, Scatter plot, correlation, Global
test, T- test etc. According to the following cluster sampling data (cluster data means
select homogeneous data selecting from a sampling observation)
FMI
20,000.00
60,000.00
50,000.00
40,000.00
40,000.00
50,000.00
45,000.00
35,000.00
30,000.00
40,000.00
50,000.00
40,000.00
40,000.00
50,000.00
50,000.00
20,000.00
50,000.00
25,000.00
20,000.00
27,000.00
50,000.00
60,000.00
45,000.00
35,000.00
40,000.00
20,000.00
20,000.00
20,000.00
FMI
45,000.00
40,000.00
55,000.00
FMI

FME
16,000.00
40,000.00
40,000.00
30,000.00
38,000.00
35,000.00
35,000.00
25,000.00
28,000.00
32,000.00
40,000.00
35,000.00
35,000.00
30,000.00
40,000.00
15,000.00
30,000.00
22,000.00
18,000.00
18,000.00
45,000.00
45,000.00
40,000.00
32,000.00
30,000.00
10,000.00
10,000.00
10,000.00
FME
30,000.00
30,000.00
40,000.00
FME

FE
14.00
14.00
15.00
14.00
14.00
14.00
14.00
15.00
14.00
15.00
16.00
14.00
14.00
14.00
15.00
14.00
15.00
14.00
14.00
15.00
15.00
0.00
14.00
15.00
14.00
0.00
14.00
14.00
FE
14.00
14.00
14
FE

FMI
55,000.00
150,000.00
30,000.00
18,000.00
25,000.00
35,000.00
90,000.00
30,000.00
50,000.00
20,000.00
35,000.00
30,000.00
15,000.00
40,000.00
25,000.00
40,000.00
45,000.00
30,000.00
20,000.00
41,000.00
20,000.00
18,000.00
30,000.00
80,000.00
80,000.00
22,000.00
1,00,000
50,000
FMI
50,000
1,00,000
30,000
FMI

FME
40,000.00
70,000.00
25,000.00
15,000.00
25,000.00
28,000.00
60,000.00
25,000.00
30,000.00
18,000.00
30,000.00
28,000.00
10,000.00
25,000.00
22,000.00
35,000.00
30,000.00
20,000.00
25,000.00
35,000.00
19,000.00
17,000.00
28,000.00
70,000.00
30,000.00
15,000.00
40,000
40,000
FME
20,000
90, 000
25,000
FME

FE
14
4
12
14
0
14
14
14
12
18
18
12
14
12
12
18
5
18
18
16
16
12
14
0
0
12
12
10
FE
0
14
16
FE

25,000
50,000
50,000
55,000
80,000
90,000
30,000
22,000
30,000
1,50,000
30,000
30,000
35,000
20,000
40,000
40,000
25,000
18,000
25,000
23,000
50,000
20,000
50,000
20,000
35,000
8000
40000
30000
25000
50000
25000
50000
26000
25000
20000
30000
30000
35000
50000

25,000
35,000
40,000
40,000
50,000
45,000
20,000
22,000
20,000
1,00,000
25,000
25,000
30,000
17,000
35,000
20,000
25,000
12,000
25,000
22,000
35,000
20,000
30,000
19,000
35,000
10000
25000
22000
10000
45000
20000
40000
12000
20000
15000
23000
20000
30000
48000

12
0
0
14
16
16
16
0
10
16
16
0
16
14
16
10
14
16
10
10
16
12
12
16
14
16
14
14
12
14
12
12
12
14
14
14
14
14
16

30000
25000
21000
20000
30000

20000
22000
19000
15000
20000

14
14
14
12
12

We know that under the assumptions of classical linear regression model, by using
ordinary least square(OLS) method, the fitted regression is
5581.254 .530 202.161

1
2

Here,

1 FMI
2 FE

0 5581.254
1 .530
2 202.161
Again, b1 .530 1 means the family expense (FME) is increased .530 times, if we

change 1 unit of family income (FMI), when other variable are remain constant.
b2 202.161 2 Means the family expense is increased 202.161times, if we change 1

unit of father education (FE), when other variable are remain constant.
b0 5581.254 Means, the family expense is fixed for 5581.254, if we hold all

variables.

Descriptive
Descriptive statistics are used to describe the basic feature of the data.
They provide simple survey about the sample and measurement.
Descriptive Statistics for Father Education (FE)
N
FE
Valid N (listwise)

105
105

Minimum
0

Maximum
18

Mean
12.54

Std. Deviation
4.618

Descriptive Statistics family income (FMI)

N
FMI
Valid N (listwise)

102
102

Minimum
8000

Maximum
150000

Mean
37490.20

Std. Deviation
19574.051

7
0
6
0
5
0
4
0
3
0
2
0
1
002
04
06
08
01
001
2
01
4
0
Descriptive Statistics family expense (FME)
N

103
103

Minimum
10000

Maximum
70000

Correlations
Correlations

FMI

Pearson Correlation
Sig. (2-tailed)

Mean
28077.67

Std. Deviation
11774.590

Graph for FME & FMI

F
M
E

FME
Valid N (listwise)

FMI
1

FME
.861(**)
.000

FME

102

102

Pearson Correlation

.861(**)

Sig. (2-tailed)

.000

102
103
** Correlation is significant at the 0.01 level (2-tailed).

7
0
6
0
5
0
4
0
3
0
2
0
1
0051
01
52
0

F
M
E

From the graph we can say that it is a slight positive correlation because if we increase or
decrease the FMI then FME variable is increased or decreased. We also say that two
variable are positively correlated with other because their values are 1 & 0.861 .

Graph for FME & FE

Correlations
Correlations
FME

FE

FME

Pearson Correlation
Sig. (2-tailed)
N

FE

Pearson Correlation

-.135
.175

103

103

-.135

Sig. (2-tailed)

.175

103

105

From the graph we can say that it is a negative correlation because if we increase or
decrease the FME & FE then changes in both sides in same percentage. We also say that
two variable are negatively correlated with other because their values are 1 & -0.135.

Regression
Now we are discussing about the Regression Analysis of model summary, coefficient
and ANOVA.
Variables Entered/Removed(b)
Variables
Variables
Entered
Removed
FE, FMI(a)
.
a All requested variables entered.
b Dependent Variable: FME
Model
1

Method
Enter

Model Summary

Model
1

R
R Square
.864(a)
.747
a Predictors: (Constant), FE, FMI

Adjusted R
Square
.742

Std. Error of
the Estimate
5978.334

R 2 .747 Means on an average 74.7% of total variation in dependent variable can

be explain by the regression model. Therefore it can explain 74.7%, so we can say
that this explanation is good.

R 2 = .747. We use adjusted R square for justifying reasonable independent

variable. Here, adjusted R square is near to R square. So We can say that
the measure is good fit to the estimated multiple regression.
Coefficients (a

Unstandardized
Coefficients

Model

Standardized
Coefficients

B
5581.254
.530

Std. Error
2316.129
.031

202.161
a Dependent Variable: FME

131.315

(Constant)
FMI
FE

Sig.

Beta
.880

2.410
16.899

.018
.000

.080

1.540

.127

ANOVA (b)
Sum of
Squares
Regression
104595364
43.417
Residual
353830669
3.838
Total
139978431
37.255
a Predictors: (Constant), FE, FMI
b Dependent Variable: FME
Model
1

df
2
99

Mean Square
5229768221.7
09

F
146.326

Sig.
.000(a)

35740471.655

101

Global test ( F Test ):

The hypothesis is,

H 0 : 1 2 0
H a : Any One Of Them 0

At the level of .05 , the critical value is 3.09. We reject Null

Hypothesis, If F F , k 1,n k 1
The test is, F

MSSE
5229768221.709
146.33
=
MSSR
35740471.655

Here, F (146.33)> F , k 1, n k 1 (3.09). Therefore we can reject Null Hypothesis

So that there are enough evidence to say that every independent variable is actively
played.

T- Test:
For variable 1 , the hypothesis is,

H 0 : 1 0
H a : 1 0

We reject null hypothesis, if t t / 2 ,n k 1 or t t / 2,n k 1 . And the critical

value is 1.984.
The test is, t

b1
.530

16.899
SD(b1 ) .031

Here, t (16.899)> t / 2, n k 1 (1.984). Therefore we can reject Null Hypothesis

So that there is enough evidence to say that the independent variable (FMI) is
actively played.
For variable 2 , the hypothesis is,

H0 : 2 0
H a : 2 0

We reject null hypothesis, if t t / 2 , n k 1 or t t / 2 ,n k 1 . And the critical

value is 1.984.
The test is, t

b2
202.161

1.540
SD(b2 ) 131.315

Here, t (1.540)> t / 2 , n k 1 (1.984). Therefore we can reject Null Hypothesis

So that there is enough evidence to say that the independent variable (FE) is actively
played.

Conclusion: Our assignment topic is Socio Economic Condition of ASAUB

students. To assign this we use only 2 variable but we need more variable to
complete this. Here, family expense is depending on family income and father
education of students. Here the variables are positively correlated. The
independent variables are relevant according to R square and adjusted R

square. Moreover, independent variables are directly played role to influence the
dependent variable. We can measure it by F test and t-test.