ECONOMETRICS ANALYSIS ON THE MONTHLY INCOME GENERATED FROM SALES OF LEGEND GUILDER, AND MALTINA DRINKS IN NIGERIA BETWEEN 2005 – 2009
This project has the aim of studying the analysis on the monthly income generated from the sale of stout, Guilder and Maltina drinks in Nigeria Breweries Ibadan Oyo State. The study employed the use of statistical method like Multicollinearity, Autocorrelation, hetrosedasticity, individual coefficient multiple regression analysis. The result of the analysis shows that there is a relationship between Stout, Guilder and Maltina drinks. It also has predictive power of an increase.
TABLE OF CONTENT
Title page i
Table of content vi
1.0 Introduction 1
1.1 Historical background of Nigeria Breweries Plc, Ibadan 1 – 2
1.2 Aims and objectives 2
1.3 Scope and coverage 2
1.4 Problem of encountered 2 -3
3.0 Research methodology 8
3.1 Source of data collection 8
3.2 Stages in econometrics research 8
3.3 Models of econometrics 8 – 9
3.4 Single equation model 9
3.5 Multiple equation models 9
3.6 General linear regression model 10 – 12
3.7 Least square estimation theory 12 – 13
3.8 Test for significance and confident interval 13 – 14
3.9 Method of testing the assumptions 14
3.9.1 Auto correlation / serial correlation 14 – 15
3.9.2 Consequence of autocorrelation 15
3.9.3 Test for autocorrelation 15 – 17
3.9.4 Partial correlation coefficient 17
3.9.5 Test of multicollinearity 17 – 18
3.9.6 Test of heteroskedasticity 18
3.9.7 Test predictive power 18 – 19
4.0 Presentation of data and analysis 20 – 23
4.1 Multicollinearity 23 – 24
4.2 Test for heteroscedasticity 24 – 25
4.3 Test for autocorrelation 25
4.4 Test for individual coefficient 25 – 27
4.5 Test of predictive power 27 – 29
5.0 Result, Summary, recommendation and conclusion 30
Econometrics can be described as a branch of social science that deals with the measurement of economic relationship. This form of relationship or used by government and private sector to formulate economic as well as to make decisions.
The most tools of econometrics is regression analysis and it studies the relationship that between variable (two or more than two). In order to carryout econometric in analysis and to show the important of econometric analysis is how economic variable depends one another there is a need to carryout some test, base on information or data collected from an industry. It is also necessary to know the data analysis technique to put in place for analyzing the know variable.
1.1 HISTORICAL BACKGROUND OF NIGERIA BREWERIES PLC IBADAN OYO STATE.
Nigeria Breweries plc, the largest brewery company in Nigeria was incorporated in 1946 and recorded a land mark when the first bottle of star larger beer Rolled off the bottling line in its Lagos Brewery in June 1949. This was followed by Aba Breweries which was commissioned in 1957., Kaduna Brewery was established in 1963 followed by Ibadan Brewery in 1982. The company established its fifty Brewery in Enugu in September, 1993, on April 9, 2001 the AMA Greenfield was commissioned and from its beginning in 1946 the company now has five operational Breweries from which its high quality product are distributed to all part of this country.
Nigeria Breweries Plc has rich portfolios of high quality brand which are has four varieties (Maltina classic Maltina Strewbery, Maltina exotic and Maltina with principle) Legend Extra Stout December 1992 Amtel Malt (1994) and Schweppes range of carbonated soft drinks included in December 1996 (Schweppes soda water). It was followed by the lunch of crush orange in November 1997 and Schweppes pine apple in October 1999. The company had earlier hundred into the Nigeria market Heineken Larger beer in June 1998. The company decided to exist the carbonated soft drinks market in August 2001, because of the need to concentrate on its area of core competence.
Nigerian Breweries Plc is a socially responsible corporate citizen with a very good record of corporate philanthropy in the areas of education, environment and communication among others. The company in 1994 establish on education. Trust fund #100 million to take more active part in the finding of educational and research facilities in higher citadel of learning’s all an effort to provide and encourage academic excellence in Nigeria. This is in addition to its secondary and university scholarship programme for children of its employees.
1.1 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
- To formulate the economic policy and test a decision using the parameter obtained.
1.2 SCOPE AND COVERAGE
Econometric base on the calculation of economic relationship. The scope of this project is based on the income generated on the sales of three specified product of Nigeria Breweries Ibadan, Oyo State, namely stout larger beer, Guilder larger beer and maltina drinks.
1.3 PROBLEM ENCOUNTERED
There are many problem that a researcher has to encounter in collecting data for research work in carrying out this research work some problem are listed in the subsequent paragraphs.
- Reluctance of primary data owner to release their data.
- Transport risk is involved due to a traveling from one place to another during the course of the research work.
- There is also a financial problem a ransom huge of money may be needed for research work.
- Unavailability of relevance data due to some certain circumstance e.g. during political crises data may not be able to be collected for a particular month, during the N.U.R.T.W. (National Union of Road Transport Workers) crises data may also not to be accurately collected.
- Error may arises due to mis-interpretation of figures approximation rounding off and even translation of errors.