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The Regression Model for the Statistical Analysis of Albanian Economy

In practice, as well as in economic theory, fulfilling strategic, managerial and operational decisions is the ultimate goal of any company. Economic performance should be assessed on the basis of the effectiveness and efficiency of resource use. The purpose of this paper is to study economic phenomena through a statistical standpoint. Our motive is to emphasize the validity of regression analysis method on economic performance. Multiple regression analysis (MRA) will be applied to demonstrate the economic trend of the transition economy of Albania. All paper will be a case study for a limited liability company in the production industry. There are several processes from raw material to final product. We have used multiple linear regression model (MLRM) and three types of statistical technique for statistical analysis (SA): regression analysis (RA), correlation analysis (CA),analysis of variance (Two-way ANOVA) to represent a mathematical-statistical model for analyzing the company's economic performance depending on the indicators used. The main purpose of SA used in this paper is to show the type of relationship between variables presented by a multiple linear regression (MLR) and to explain it as a mathe matical-statistical model (MSM in our case with one dependent variable and two independent variables). The Statistical Package for Social Sciences, version 17.5 (SPSS) will be used to analyze and evaluate statistical outcomes. Keywords—Multiple linear regression, economic performance, statistical analysis, statistical correlation method.