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2004 Car Prices Scott Ning Sean Meade. Predict vehicle retail price Sports Car Sport Utility Vehicle Wagon Minivan Pickup All-Wheel Drive Rear-Wheel Drive.

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Presentation on theme: "2004 Car Prices Scott Ning Sean Meade. Predict vehicle retail price Sports Car Sport Utility Vehicle Wagon Minivan Pickup All-Wheel Drive Rear-Wheel Drive."— Presentation transcript:

1 2004 Car Prices Scott Ning Sean Meade

2 Predict vehicle retail price Sports Car Sport Utility Vehicle Wagon Minivan Pickup All-Wheel Drive Rear-Wheel Drive Suggested Retail Price, what the manufacturer thinks the vehicle is worth, including adequate profit for the automaker and the dealer ($ Dollars) Dealer Cost (or "invoice price"), what the dealership pays the manufacturer ($) Engine Size (liters) Number of Cylinders Horsepower City Miles Per Gallon Highway Miles Per Gallon Weight (Pounds) Wheel Base (inches) Length (inches) Width (inches)

3 Correlation SportsCar SportsUtility Wagon Minivan Pickup All-WheelDrive Price 0.38186 0.04193 -0.05565 -0.05679 -0.09837 0.09999 Rear-WheelDrive DealerCost EngineSize Cylinders HP Price 0.40359 0.99913 0.57175 0.62876 0.82695 city_mpg mpg pounds wheel length width Price -0.46113 -0.42940 0.44934 0.15035 0.21489 0.32811

4 Original Equation Price = -2441.74290 + (394.86928*sc) + (300.23290*su) - (98.50362*wagon) + (315.97925*minivan) + (0*pickup) + (250.71560*awd) + (150.49711*rwd) + (1.08958*dealerCost) + (193.70722*size) – (31.82502*cylinders) + (1.03945*hp) – (12.17910*cityMPG) + (35.98411*highwayMPG) – (0.03931*pounds) - (46.61526*wheel) + (15.35560*length) + (41.49026*width)

5 Backward Elimination Price = -2341.72702 + (322.32671*sc) + (1.09095*dealerCost) + (182.18777*size) – (30.47070*wheel) + (70.47453*width)

6 R-Squared Selection

7 Goodness of Fit F-Test  F-value is very high  P-value is less than 0.0001  Therefore, test value is significant Model has predictive value

8 Normality Data is heavily left-skewed Assumption of normality not met

9 VIF

10 Which car type? Sports Sports Wagon Mini Pickup car Util Van

11 Which car type? Sports Sports Wagon Mini Pickup car Util Van


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