Page 101 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

3. To determine whether gold price per gram data is useful in forecasting S&P BSE Sensex.
4. To determine whether Consumer Price Index (CPI) for retail inflation data is useful in

forecasting S&P BSE Sensex.
5. To determine whether repo rate data is useful in forecasting S&P BSE Sensex.

Conceptual Framework:

For multiple regression, S&P BSE Sensex is dependent variable (criteria or response variable) and total
net FII (Foreign institutional investors) investment, gold price per gram, Consumer Price Index (CPI)

for retail inflation and repo rate are independent variables (predictors or explanatory variables).

R (4.2.3) is used to fit multiple linear regression model and Granger causality test.

Outlier has been removed from the original data and model fitted on 242 observations.

Hypothesis:

1. Hypothesis for Multiple linear regression model:

Null Hypothesis (H0): There is no significant impact of FII (Foreign institutional investors) investment,
gold price per gram, Consumer Price Index (CPI) for retail inflation and repo rate on S&P BSE Sensex.

Alternative Hypothesis (H1): At least one of the regressors total net FII (Foreign institutional investors)

investment, gold price per gram, Consumer Price Index (CPI) for retail inflation and repo rate contributes
significantly to the S&P BSE Sensex calculation.

Test: Conduct F-test for overall significance in regression model