Name of Author- Kalpesh Tipte (021230022204)
Introduction- Kirloskar Group is an Indian conglomerate, headquartered in Pune. The group exports to over 70 countries over most of Africa, Southeast Asia and Europe. The flagship and holding company, Kirloskar Brothers Ltd, established in 1888, is India’s largest maker of pumps and valves. It was the manufacturer of India’s first modern iron plough. One of the group companies is a major component supplier for the indigenous Arihant Nuclear Submarine program.
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the www.Investing.com site and after that Nifty 50(y) was regressed on Kirloskar Industries ltd (x).
Data Analysis
Regression equation, β= -0.000515248 + 0.251354384 (x)
Where x represents the Kirloskar Industries ltd equity.
No. of observations (N)= 52
R²=0.375644026, F=30.08252036
t-stat for x=5.484753445
The above equation tells us the relationship between Kirloskar Industries Ltd. Equity (x) and Nifty 50 (y). The positive sign means there is a direct relationship between them, which means if Kirloskar Industries ltd equity increases, then the Nifty 50 will also increase.
If the Kirloskar Industries ltd rises by 1 point, then the Nifty 50 will also increase by 0.2508 Rs.
T-stat for the Kirloskar Industries ltd equity is 5.484753445 and the p-value is 1.36695E-06 which is less than 0.01 means the data is statistically significant at a 1% confidence level.
N=52, there is a total of 52 observations.
R²= 0.375644026 means 37.56 % of y is explained by x while the rest 62.43 % is an error.