Subject: Business / Management

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
Here, the industry annual sales will be designated as the dependent variable.
Next, we need to identify theoretically all those factors that may explain the
variations of the dependent variable. Some explanations are:
a) Average annual income that can be measured by US GDP. In theory, it
is argued that as the average annual income increases, consumers will
be inclined to make more purchases. So, the relationship between pet
sales and average income is expected to be positive.
b) After we have defined the theoretical relationship between the
dependent and independent variable, we proceed to collect data on
the variables for the purpose of testing. Does the data provide
evidence of the theoretical relationship between Sales (Y) and
income( X). Details on the expected relationship will be covered in
chapter 13 in the course.
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. Page 2 of 3 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: The remaining three stages of Organize, Visualize and
Analyze are listed below
1. Construct a frequency distribution or histogram for your variable
2. Graphically depict your data using two other methods studied (scatter
plot/trend line/ histogram/pie chart).
3. 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.
4. 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
5. Comments on your results – this is important so think carefully and
write.
Format:
1. Introduction
– Background material to your topic (the industry)
– The scope of your research ( what aspect of the industry are you
focusing on)
– State the overall purpose of your research ( to evaluate, to examine
whether a relationship exists)
– Your main findings (offer an analysis); make recommendations, etc.
2. Body
3. Summary
4. Conclusion (main findings)
5. References
6. APA:
a)
b)
c)
d) Double lines
APA style
Times Numeral Font
Errors free Page 3 of 3 Grading Rubrics 1.
2.
3.
4.
5. DCOVA: State your Hypothesis (15%)
Data gathering (10%)
Data Analysis (60)
Summary and Conclusion(10)
APA format, including references, and errors free (5%)


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