Sandbox PwC Distribution Project Case Study Business Report
- Subject Code :
COMM5000
Description of assessment task
In this final report, you will use the information you have collected in your analysis in M1 and M2 to build a linear regression model. This model will capture the key objectives we have been pursuing since M1.
- We Want to investigate what company characteristics are determinant factors of its
- We Want to know if the country of jurisdiction has a premium or effect on a company's
- We want to address the question of whether Covid19 has affected the profitability of wholesale
In M2, you have performed a series of hypothesis testing to see whether there is evidence that profits differ between countries (at least for some industries) and whether there was a significant change from 2019 to post Covid19 years. Hypothesis testing is very informative but does not provide us with a means to control for confounding effects. For example, suppose you conclude that you reject a null of equal population means of operating revenues growth rates between the UK and Australia. In that case, you can’t conclude that this difference is due solely to the country's effect. Other factors may affect revenues even if you control for the country of jurisdiction. Meaning that rejecting the null hypothesis here is driven by factors other than differences in the country.
To provide a ceteris paribus analysis, we need to use a regression model to identify and estimate the country effect (if any) while controlling for other factors. Other factors are defined by the data we are given. We will use the information on the company characteristics to control for the factors that may drive profitability and estimate the effect of the country of jurisdiction.
