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2004 Car Prices

2004 Car Prices

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2004 Car Prices

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  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 Price0.381860.04193-0.05565 -0.05679-0.09837 0.09999 Rear-WheelDrive DealerCost EngineSize Cylinders HP Price0.40359 0.999130.571750.628760.82695 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