Multiple Regression Analysis Problem

Abstract. This article investigates the application of multiple regression analysis to examine the relationship between milk sales volume and price under different operating conditions. A simple regression model is first estimated to evaluate the impact of price on sales volume using the ordinary least squares method. The statistical adequacy of the model is assessed through the coefficient of determination, t-statistics, and Fisher’s F-test. To account for the effect of a strike period, a dummy variable is incorporated into the regression model. The results show that the inclusion of the dummy variable substantially improves the explanatory power and statistical significance of the model. The findings confirm the significant influence of the strike factor on milk sales and demonstrate the importance of incorporating qualitative variables into econometric models.