Linear Regression Analysis

4.1.SIMPLE LINEAR REGRESSION ANALYSIS

Taking the number of clusters assisted as the independent variable and the funds allocated as the dependent variable, a scatter plot can be drawn using the data to show the pattern of relationship between the two variables.

Null Hypothesis, Ho: There is no statistically significant correlation between the number of units and fund allocation; β=0

Alternative Hypothesis, Ha: There is statistically significant correlation between the number of units and fund allocation; β≠0

Using the table, the regression equation is as follows:

Y= -4.1+0.31X

Figure 3: Simple linear regression

The graph distinctly shows the positive relation between the two variables. However, the relation is very weak. The slope

They require a comprehensive analysis because their unique factors pose different demands. A cluster that has been in existence for a longer period of time and has been able to establish itself in the industry will have different requirement of funds as compared to a newly formed cluster. Adopting a uniform approach to allocate funds to both the clusters might not serve the purpose. It would lead to inefficient utilization of the limited resources available with the

Most of these clusters have poor infrastructure coupled with high production costs owing to inaccessibility to technological advancements and financial assistance provided under the schemes introduced by the government. This affects the quality of products and also the lifetime of a particular unit. There are several clusters with various languishing crafts manufactured across the country, but have been largely neglected and their potential has remained unrealised. Clusters tend to provide a framework for formulating and implementing central and state policies and making investments to foster economic development. Different strategies and interventions need to be formulated for each category of craft clusters. A detailed mapping of clusters before the implementation of cluster-development scheme is a requisite step to ensure maximum coverage and impact of the scheme. Therefore, there is an urgent need to map all craft clusters in all the states to facilitate categorization as well as prioritization. The government can do so through a census of such clusters. While conducting the census, the government can differentiate between self-reliant clusters and clusters in dire need of funds. This will help the government to maintain a database and ensure that the benefits of this scheme are