Briefly explain the techniques used for analyzing the Industry wide factors.

(a) The techniques used for analyzing the industry wide factors are: (a) Regression Analysis: Investor diagnoses the factors determining the demand for output of the industry through product demand analysis. Factors to be considered are GNP, disposable income, per capita consumption / income, price elasticity of demand. For identifying factors affecting demand, statistical techniques like regression analysis and correlation are used. (b) Input – Output Analysis: It reflects the flow of goods and services through the economy, intermediate steps in production process as goods proceed from raw material stage through final consumption. This is carried out to detect changing patterns/trends indicating growth/decline of industries.