Statistical Analysis in the Car Market

In: Business and Management

Submitted By AnaAlmeida28
Words 2902
Pages 12
Statistical Analysis in the Car Market

Course Title: Applied Managerial Statistics
Course Number: GM 533
Instructor Name: Susan Orr
Student Name: Braulio E. Assis (713-382-8789)
Home Address: 3833 Cummins St Apt.1328, Houston, TX 77027
Email Address: edmur_assis2005@hotmail.com
Title of the Work: “Statistical Analysis in the Car Market”
Date: Aug 19, 2011

Introduction

Business managers and owners in the car industry need information on which they could anchor their decision to maximize the company’s profit as well as to ensure efficiency and productivity of the operations of their business. One of these factors is the price, which is one the key determinants of demand and supply. Further, it is essential for them to know the various factors that affect the price of cars and how each of those factors influence the price.
This report presents the result of the statistical analysis done in order to identify the factors that significantly affect the price of cars. The asking price is in terms of dollars. The predictor variables considered are the following: whether the car is convertible or not (CONVERT), the age of cars in years (AGE), the odometer reading in miles (MILES), whether the car is automatic or not (TRANS), whether the car has air conditioner or not (AIR), the number of cylinder in engine (CYL), the color (maroon, silver, grey, red, blue, black or white), (8) the model of the car, whether it is a GT model or not, and (9) the ownership which is either private or dealer owner.
The analysis involved 35 cars from 1 to 8 years. The price of the cars ranges from $2,488 to $14,500 with an average of $8,194. In terms of the odometer reading, the minimum recorded is 3000 miles while the maximum is 110,000 miles. Out of the 35 cars, majority were found to be non-convertible (20), automatic (21), having 8 engines (24), with blue (9) and white (9)…...

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