HOW DOES INFLATION AFFECT CONSUMERS PART XIII

REAL LIFE USES AND APPLICATIONS REGRESSION ANALYSIS HAS VERY HIGH IMPORTANCE IN VARIOUS DISCIPLINES SUCH AS BUSINESS, ECONOMIC, ENGINEERING AND BIOLOGICAL SCIENCES FOR PREDICTED VARIOUS OUTCOMES AS A RESULT OF VARIOUS OF BUSINESS THERE ARE TWO PRIMARY USES FOR REGRESSION WHICH ARE STATED BELOW, PREDICTED THE FUTURE TO PREDICT A CERTAIN EVENT THAT IS YET TO OCCUR FOR EXAMPLE THE DEMAND OF A CERTAIN PRODUCT IN THE NEAR FUTURE OR THE ESTIMATED SALES EXAMINE THE RELATIONSHIP BETWEEN TWO OR MORE VARIABLE, THE DEPENDENT (PREDICTOR) AND THE INDEPENDENT (RESPONSE) VARIABLE, AND THEN STUDIED WHY THIS METHOD IS WIDELY USED FOR PREDICTING OR ESTIMATING THE OUTCOMES IN VARIOUS FIELDS. 

PLUS, WE HAVE ALSO WENT THROUGH STEP BY STEP METHOD TO USING THIS METHOD TO FURCATE THE FUTURE DEMAND OF THE PRODUCT AND LASTLY WE HAVE DISCUSSED SOME OF ITS MANY APPLICATIONS AND BENEFITS THAT ARE BEING USED IN WIDE NUMBER OF FIELDS. FINALLY, WE CAN CONCLUDE THAT REGRESSION ANALYSIS IS SO FAR CONSIDERED THE BEST TECHNIQUE FOR PREDICTING THE OUTCOME OF VARIOUS MODELS AND 18 TODAYS MANAGERS BELIEVES IT TO BE AN INDISPENSABLE TOOL. 

REFERENCES HTTP://WWW.PURCHASES MARTER.COM/ARTICLES/119 HTTP://BLOGSPOT.COM/201482REGRESSION-METHOD-0DEMAND-FORECASTING.HML

REGRESSION-ANALYSIS-BUSINESS-77200.HTML HTTP://BIOLOGY.QUEENSU.CR/

ACADEMICS/UNDERGRADUATE/RESOURCES-FOR-COURSES/ANALYZING-DATA/CORRELATION-AND-REGRESSION/EACH YEAR WE HAVE THAT THE PRICES OF THE GOODS AND SERVICES GET HIGHER. THE PRICE OF PETROL IN 2008 WAS AROUND RS80 IN 2013, AFTER AROUND 5YEARS, THE PRICE HAD RISEN TO RS105. THIS ANNUAL (OR MONTHLY DEPENDING ON HOW WE MEASURE IT) INCREASE IS KNOWN AS INFLATION TO UNDERSTAND THE EFFECTS OF INFLATION ON CONSUMER, WE MUST FIRST GET INTO WHAT INFLATION REALLY IS.

INFLATION IS THE SUSTAINED INCREASE IN THE PRICES OF GOODS AND SERVICES IN AN ECONOMY OVER A PERIOD OF TIME. IF COULD BE AN INCREMENT MEASURED MONTHLY OR YEARLY. IT USUALLY HAS A VERY REVERSE EFFECT ON THE ECONOMY OF A PERSON AND A COUNTRY.

THERE ARE 5 TYPES OF INFLATION, HYPERINFLATION, ASSET INFLATION, CREEPING INFLATION, WARNING INFLATION AND GALLOPING INFLATION. HYPERINFLATION IS THE WORST TYPE. IT’S WHEN PRICES RISE MORE THAN 50% A MONTH. IT’S VERY RARE BUT IT HAS HAPPENED. SINCE MOST OF THE ECONOMIES ARE NOT FULLY BACKED BY EITHER GOLD OR SILVER, THE ECONOMIES ARE THEN RUN ON FLAT MONEY, WHICH MAKES IT EASIER TO MANIPULATE INFLATION DUE TO SEVERAL REASONS MOTIVATED EITHER POLITICALLY OR ELSE. ONE SUCH EXAMPLE IN HISTORY COULD BE IN THE FORM OF INDONESIA OR GERMANY. IN 1928S, GERMANY WAS STRUCK BY HYPERINFLATION. 

SINCE GERMANY HAD LOST THE WORLD WAR 1, THE VICTORIOUS NATIONS ASKED IT FOR COMPENSATION OF THE LOSSES THEY FACED DURING THE WAR AT THE HANDS OF THE GERMAN. THE GERMS COULDN’T PAY THEM BACK IN GERMAN CURRENCY BECAUSE OF ITS SUSPECT DUE TO PREVIOUS MASS BORROWING SO THE GERMANS MASS PRINTED THE THEIR PAPER NOTES WHICH LED TO A DEVALUATION OF THEIR CURRENCY WHICH IN TURN LED TO HYPERINFLATION IN THEIR COUNTRY. ASSET INFLATION IS THE MILDEST AND OCCURS VERY OFTEN. 

ONE SUCH EXAMPLE COULD BE THAT THE PRICES OF VEGETABLES AND FRUITS SO UP EVERY YEAR. THIS IS DUE TO THE ANTICIPATION OF RISING DEMAND. CREEPING INFLATION IS WHEN PRICES RISE BY A FIXED AMOUNT ANNUALLY. IT’S SOMEWHAT COMMON. HOWEVER, THE LAST TIME IT OCCURRED WAS IN 2007.