Case Study-2

Case Study- We collected data relating to the gold price (per gram) in two places namely Chennai Market and Mumbai Market for ten days from th Feb to st March and the same is recorded below. Date th Feb st Feb nd Feb rd Feb th Feb Chennai X Mumbai Y Date th Feb th Feb th Feb th Feb st Mar Chennai X Mumbai Y Do we agree that the price of gold in Chennai market has its impact on Mumbai market? Let X denotes the gold price per gm in Chennai market and Y denotes the gold - - price per gm in Mumbai market. The actual observations given in the table indicates that the gold price ranges from ` to ` in Chennai market and the gold price range from ` (per gram) to ` (per gram) in Mumbai market. Further it is to be noted that there is some oscillations in the gold price rate dated between th Feb to th Feb and th Feb price is remain same as the previous day that is Feb th . It may be due to holiday of Gold markets. It is clear from the above table the price of gold rate go on rapidly decreasing from th Feb to st March. The same fluctuations is observed in Mumbai market from Feb th to th and remain same on th and th and rapidly decreasing from Feb th to st March . So, the market trend in respect of gold rate is same in two markets. We found that the average gold price in Chennai market during these days is ` . (per gm) and the Mumbai market is ` . (per gm). The variation among the prices of gold in days. To identify the variation of each individual observation from the mean of all observations. We make use of the best measure known as standard deviation. In this study it is found that the price of gold has a average deviation of ` (approximately) in Chennai market and ` (approximately) in Mumbai market. To verify the consistency of the prices between the two cities, we attempt coefficient of variation which expresses the percentage of variation. Coefficient of variation of gold price in Chennai market is CV X = X v × = × = . % Similarly, Coefficient of variation of gold price in Mumbai market is CV Y = Y Y v × = × = . % Comparison of these coefficients of variations we inferred that the Mumbai market has consistent or more stable in price of gold. Further to examine the linear relationship between the two variables X and Y . We carry out correlation analysis results r ( X , Y ) = . . It indicates that there is a positive correlation in price of gold between Mumbai market and Chennai market. Do you think finding a regression line makes sense here? - - Correlation and Regression analysis