1. Determinants of 2003 Ford Taurus Auction Prices Presented by: Brandon Briggs, Samantha Gardner, Brett Hanifin, Dane Louvier, Ali Irturk, Ryan Nabinger

2. Introduction  What goes into the auction price of a car?

3. Data Set  We examined the auction prices of 19,704 2003 Ford Taurus.  All data was from individual auction records from Aucnet. Mileage Trim package Location Sale type Sale month

4. Data Set  Mileage – Numerical Variable  Trim Package – Dummy Variables SE, LX, SES, SEL  Location – Dummy Variables West, Middle, East  Sale Type – Dummy Variables As is, Reposessions, Dealer, Fleet, Manufacturer  Sale Month – Dummy Variables Jan 06 – Nov 06

5. Descriptive Statistics PriceMileagetrimSEtrimSEStrimSELtrimLX Mean6,19457,7570.59030.33220.04860.0289 Standard Error121770.00350.00340.00150.0012 Median6200551351000 Mode6000662701000 Standard Deviation1638247750.49180.47100.21500.1675 Sample Variance26842766137996960.24190.22190.04620.0281 Kurtosis-0.22351.2503-1.8652-1.492415.636329.6527 Skewness-0.07870.7796-0.36740.71264.19945.6258 Range127002093221111 Minimum100011850000 Maximum137002105071111 Sum1219967541137575658116276543957569 Count19696

6. Descriptive Statistics AsisDealerFleetleaseManufRepoWestMiddleEast Mean0.00080.25030.73350.00620.00910.14920.41280.4381 Standard Error0.00020.00310.00320.00060.00070.00250.0035 Median00100000 Mode00100000 Standard Deviation0.02850.43320.44210.07880.09520.35630.49230.4962 Sample Variance0.00080.18760.19550.00620.00910.12690.24240.2462 Kurtosis1226.3124-0.6701-0.8836155.1761104.45831.8800-1.8746-1.9378 Skewness35.04551.1532-1.056612.536410.31731.96970.35440.2497 Range11111111 Minimum00000000 Maximum11111111 Sum16492914448123180293881308628 Count19696

7. Exploratory Data Analysis

9. Percentage of Total Sales by Month

10. Percentage of Total Sales by Location

11. Percentage of Total Sales by Sale Type

12. Percentage of Total Sales by Trim Type

13. Regression Analysis

14. Regression Results  The F-statistic was 2393.282 P-value for F-statistic was significant at 5% level  T-Statistics for manufacturers, repossessions, May, July, and August were not significant at the 5% level

15. Regression Results  Sale Type – Lowest to Highest As is Manufacture (statistically insignificant) Fleet lease Reposessions (statistically insignificant) Dealer  Sale Month Later months decrease price more than earlier months

16. Regression Results

17.  Mileage decreases auction price  Trim type – Lowest to Highest LX SE SES SEL  Location – Lowest to Highest West East Middle

18. Price as a Function of Mileage