Total edible oil consumption (TEO) is the dependent variable, and the independent variables are Household size(HS), Household income(HI), Household education Index(HEI), Price(P),Total Awareness score on oil(TAS) and the Ratio of Total oil expenditure to Total food expenditure (R) .θ is the disturbance term, α is the intercept term and a, b, c, d, e and f are the corresponding coefficients of the independent variables. Based on the survey data obtained from 360 respondents a regression model is constructed. Ordinary Least Square Estimation technique is used to estimate the parameters.
The overall significance of the model was tested using One way ANOVA (F test) which yielded an F value 49.190 and the exact probability p- value is 0.00. The …show more content…
B Std. Error Beta (Constant) .234 .751 311 .756 Household Size .426 .039 445 10.984 .000 Household Education Index .080 .026 .136 3.102 .002 Household Income 1.333E-5 .000 .265 5.508 .000 Price -.014 .002 -.235 -5.640 .000 Ratio of TOE to TFE 21.728 2.363 .404 9.195 .000 Total Awareness Score .004 .026 .006 145 .885
The model 1 can be expressed in the form
TEO= 0.234+0.426HS+0.080HEI +0.0000133HI -0.014P+21.728R +0.004TAS
Among the six independent variables considered in the model all the variables except Total Awareness Score on oils are found to be significant. TAO is insignificant may be due to an almost similar awareness that exist among respondents. As we expect from Law of demand price is found to be negative. Out of all these significant variables, the relative importance was examined using standardized coefficients. Household size is an important variable followed by Ratio of oil expenditure to total food expenditure. On comparing income and price, income is found to be relatively more important. The unstandardised coefficient B value for Household size reveals that for an additional increase in the household size, the total edible oil consumption rises by 0.426 units. When there is one unit change in price of oil it decreases oil consumption by 0.014 units only. Since oil is an essential commodity the change in consumption is …show more content…
The higher standardized coefficient of Ratio of Oil expenditure to total food expenditure indicates the relevance of this variable followed by income, education index and household size. There is a positive relationship between Household size and quantity of coconut oil consumed. Though income is a significant predictor the variation caused by it is nearly zero. On comparing Model1 and Model 2 it is examined that price is an insignificant variable in the determination of total coconut oil consumed at household level. An additional increase in HEI leads to a 0.079 unit of change in
The overall significance of the model was tested using One way ANOVA (F test) which yielded an F value 49.190 and the exact probability p- value is 0.00. The …show more content…
B Std. Error Beta (Constant) .234 .751 311 .756 Household Size .426 .039 445 10.984 .000 Household Education Index .080 .026 .136 3.102 .002 Household Income 1.333E-5 .000 .265 5.508 .000 Price -.014 .002 -.235 -5.640 .000 Ratio of TOE to TFE 21.728 2.363 .404 9.195 .000 Total Awareness Score .004 .026 .006 145 .885
The model 1 can be expressed in the form
TEO= 0.234+0.426HS+0.080HEI +0.0000133HI -0.014P+21.728R +0.004TAS
Among the six independent variables considered in the model all the variables except Total Awareness Score on oils are found to be significant. TAO is insignificant may be due to an almost similar awareness that exist among respondents. As we expect from Law of demand price is found to be negative. Out of all these significant variables, the relative importance was examined using standardized coefficients. Household size is an important variable followed by Ratio of oil expenditure to total food expenditure. On comparing income and price, income is found to be relatively more important. The unstandardised coefficient B value for Household size reveals that for an additional increase in the household size, the total edible oil consumption rises by 0.426 units. When there is one unit change in price of oil it decreases oil consumption by 0.014 units only. Since oil is an essential commodity the change in consumption is …show more content…
The higher standardized coefficient of Ratio of Oil expenditure to total food expenditure indicates the relevance of this variable followed by income, education index and household size. There is a positive relationship between Household size and quantity of coconut oil consumed. Though income is a significant predictor the variation caused by it is nearly zero. On comparing Model1 and Model 2 it is examined that price is an insignificant variable in the determination of total coconut oil consumed at household level. An additional increase in HEI leads to a 0.079 unit of change in