a. You are trying to understand the performance of Indian stock market in relation with the

performance of Indian Economy. If you are to prepare a simple mutli-variate regression

model to study the above relationship, how would you prepare the model? Discuss the

list of variables, its relevance and source of data for the above analysis.

b. In the above analysis, if you were to analyse whether there is a presence of a month of

the year effect in Indian Stock Market, how would you modify the analysis using a dummy variable? Discuss the concept of dummy variable trap and how you could avoid

that in the current analysis.

1 2 3 4 5 69 10 11 12 2 2 2 2 2 2 2 2 2 2 85223 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 33 34 People 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Blood Pressure 89 151 37 127 65 96 103 194 176 74 228 158 177 169 184 195 201 197 202 257 187 128 247 246 231 225 214 288 266 206 C Age 25 30 33 35 37 40 41 43 44 48 52 55 57 58 60 61 63 65 67 66 69 71 73 72 75 78 80 82 84 85 Weight 82 142 66 113 123 147 115 178 115 116 181 164 189 133 188 192 207 219 177 244 199 158 200 219 187 195 214 154 118 125 E F 1 2 3 4 5 69 10 11 12 2 2 2 2 2 2 2 2 2 2 85223 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 33 34 People 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Blood Pressure 89 151 37 127 65 96 103 194 176 74 228 158 177 169 184 195 201 197 202 257 187 128 247 246 231 225 214 288 266 206 C Age 25 30 33 35 37 40 41 43 44 48 52 55 57 58 60 61 63 65 67 66 69 71 73 72 75 78 80 82 84 85 Weight 82 142 66 113 123 147 115 178 115 116 181 164 189 133 188 192 207 219 177 244 199 158 200 219 187 195 214 154 118 125 E F