Jurnal Varian
Vol 7 No 1 (2023)

Finding the Best Model in Nonlinear Regression: Using the Coefficient of Determination

Vitri Aprilla Handayani (Batam Institute of Technology, Indonesia)
Widya Reza (Batam Institute of Technology, Indonesia)
Saba Mehmood (University of Thal, Bhakkar Punjab Pakistan)



Article Info

Publish Date
31 Oct 2023

Abstract

In Indonesia, inflation plays a significant role in shaping economic growth. Therefore, it is essential to examine the impact of inflation on economic growth through a comprehensive analysis. This analysis aims to identify the factors influencing economic growth in Indonesia by utilizing nonlinear regression analysis. The study focuses specifically on modeling economic growth in Batam City and its correlation with inflation. The primary goal is to identify the most effective nonlinear regression model that accurately represents the relationship between economic growth and inflation, as determined by the coefficient of determination. The method used in this research is nonlinear regression methods provide a more accurate and comprehensive analysis when dealing with complex relationships and can help uncover valuable insights that may be missed by simpler linear models. The results of the analysis finding the model that is suitable for modeling inflation on economic growth is a quadratic model with a coefficient of determination of 73.4%. The research has found that the best model for explaining the impact of inflation on economic growth is the Quadratic model with an R-value of 0.734 or 75%. These results indicate that the Quadratic model can account for 75% of the influence of inflation on economic growth.

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Journal Info

Abbrev

Varian

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Mathematics Social Sciences Other

Description

Jurnal Varian adalah salah satu Jurnal Ilmiah yang terdapat di Universitas Bumigora. Jurnal ini bertujuan untuk memberikan wadah atau sarana publikasi bagi para dosen, peneliti dan praktisi baik di lingkungan internal maupun eksternal Universitas Bumigora Mataram. Jurnal ini terbit 2 (dua) kali ...