Marketing Analytics

Report for
Carkhareedo.com
DISTRIBUTION

 Initially, the distribution was skewed distribution and no tighter values so broad range from 0 -10
 Later on, after introducing Log of Selling price, we get Normal distribution with a bell-shaped
curve with tighter values, ranging from 10-16
SCATTER PLOT

With increase in km_driven, selling price is

reduced.
Selling Price*km_driven = constant(k)

SINGLE LINEAR REGRESSION

Model Summary

Model R R Adjusted R Std. Error of

Square Square the Estimate
a
1 .192 .037 .037 567817.535

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

1
 (Constant) 662055.008 14967.843 44.232 .000
1
km_driven -2.385 .185 -.192 -12.906 .000

R: Correlation between actual selling price and predicted selling price

R square: Square of the correlation between actual selling price and predicted selling price
Interpretation of model summary: R square is interpretated as the proportion of variance in
dependent variable that is together explained by all the independent variables. 37 % of variance
is accounted by model, whereas 63 % remains unaccounted so we will add more variables to
improve R square. Moreover, if the difference between Adjusted R square and R square is
minimal the model is good fit, here the difference is 0.
 Equation: SP = BO+B1*km_driven
 First test (Constant): HO: BO=0, H1: BO! =0 (If p-value <0.05, we accept HO, else we
fail to accept HO)
 Second test (Km_driven): HO: POP.B1=0, H1: POP.B1! =0
Km_driven is significant as p-value <0.05. For every additional km driven, Selling price falls by
2.385 Rupees. If km_driven was insignificant, for every 1 km driven, price decreases by 0 Rs
that is km_driven has no effect on selling price.A lay customer will give importance to
km_driven
MULTIPLE LINEAR REGRESSION
Selling-Price -

Model Summaryb

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .677a .458 .457 426185.849

R: Correlation between actual selling price and predicted selling price

R square: Square of the correlation between actual selling price and predicted selling price
Model Summary: R square is interpretated as the proportion of variance in dependent variable
that is together explained by all the independent variables. 46 % of variance is accounted by
model, whereas 54% remains unaccounted so we will add more variables to improve R square.
Moreover, if the difference between Adjusted R square and R square is minimal the model is
good fit, here the difference is 0.001.

2
Equation: Selling price = BO + B1*km_driven + B2*year +B3*transmission +B4*Petrol
+B5*Diesel+B6*First_owner+B7*Second_owner+B8* seller+B9*Dealer
Coefficients table
Model Unstandardized Coefficients Standardized t Sig.
Coefficients

B Std. Error Beta

(Constant) 951027.162 79873.931 11.907 .000

km_driven -.977 .168 -.079 -5.819 .000

y_1 35707.336 1893.797 .260 18.855 .000

tr_manual -866682.196 21965.072 -.456 -39.457 .000

Petrol -11854.075 54235.262 -.010 -.219 .827

1
Diesel 278286.856 54213.103 .241 5.133 .000

First_owner 19653.717 24722.970 .016 .795 .427

Second_owner -19153.701 25004.751 -.014 -.766 .444

Individual_seller -234122.347 43404.048 -.176 -5.394 .000

Dealer -164171.491 44419.599 -.119 -3.696 .000

Interpretation
Based on Significance Values:
Km_driven, year of manufacturing, transmission, Diesel and seller type are significant.
Petrol compared to other fuel types (Cng, Lpg) is priced 11854 Rs. lower in sample. Compared
to other fuel types (Cng, Lpg) petrol is priced 0 Rs. lower in population.
Impact on dependent variable based on Standardised Coefficient beta:
A lay customer gives most importance to: year of manufacturing followed by Diesel fuel type
Then km_driven, Dealer, Individual Seller and at last Transmission. Based on the magnitude of
standardized beta coefficients, we can state that year of manufacturing and preference of fuel as
Diesel has highest impact on selling price. The least impacting variable is transmission.
For one unit increase in year of manufacturing car, selling price increases by 35707 units, all else
remaining constant. For one unit increase in fuel type as Diesel, selling price increases by
278286 units, all else remaining constant. For one unit increase in km_driven, selling price
decreases by .977 units, all else remaining constant. For one unit increase in dealer as seller type,
selling price decreases by -164171 units, all else remaining constant. For one unit increase in
seller type as individual, selling price decreases by -234122 units, all else remaining constant.

3
For one unit increase in manual transmission, selling price decreases by 866682.196 units, all
else remaining constant.

LN (Selling Price)

Model Summaryb

Model R R Square Adjusted R Std. Error of the

Square Estimate

1 .828a .686 .685 .47101

Coefficientsa
Model Unstandardized Standardized t Sig.
Coefficients Coefficients

B Std. Error Beta

(Constant) 12.015 .088 136.107 .000

km_driven -4.175E-007 .000 -.023 -2.249 .025

y_1 .114 .002 .570 54.269 .000

tr_manual -.800 .024 -.290 -32.958 .000

Petrol .090 .060 .054 1.507 .132

1
Diesel .601 .060 .358 10.025 .000

First_owner .103 .027 .058 3.769 .000

Second_owner .061 .028 .032 2.217 .027

Individual_seller -.466 .048 -.241 -9.711 .000

Dealer -.302 .049 -.151 -6.161 .000

R: Correlation between actual selling price and predicted selling price

R square: Square of the correlation between actual selling price and predicted selling price
Model Summary: R square is interpretated as the proportion of variance in dependent variable
that is together explained by all the independent variables. 68 % of variance is accounted by
model, whereas 32% remains unaccounted so this is considerable. Moreover, if the difference
between Adjusted R square and R square is minimal the model is good fit, here the difference is
0.001.
Equation: Selling price = BO + B1*km_driven + B2*year +B3*transmission +B4*Petrol
+B5*Diesel+B6*First_owner+B7*Second_owner+B8* seller+B9*Dealer
Based on Significance Values:

4
Km_driven, year of manufacturing, transmission, Diesel, ownership and seller type are
significant. Petrol compared to other fuel types (Cng, Lpg) is priced 0.90 Rs. lower in sample.
Compared to other fuel types (Cng, Lpg) petrol is priced 0 Rs. lower in population.
Impact on dependent variable based on Standardised Coefficient beta:
A lay customer gives most importance to: year of manufacturing followed by Diesel fuel type,
first owner, second owner, Then km_driven, Dealer, Individual Seller and at last Transmission.
Based on the magnitude of standardized beta coefficients, we can state that year of
manufacturing and preference of fuel as Diesel has highest impact on selling price. The least
impacting variable is transmission. For one unit increase in year of manufacturing car, selling
price increases by 0.11 units, all else remaining constant. For one unit increase in fuel type as
Diesel, selling price increases by 0.60 units, all else remaining constant. For one unit increase in
dealer as seller type, selling price decreases by -0.30 units, all else remaining constant. For one
unit increase in seller type as individual, selling price decreases by -0.46 units, all else remaining
constant. For one unit increase in manual transmission, selling price decreases by 0.8 units, all
else remaining constant. Km_driven can’t be interpreted here.
Standard Error of Estimate for Ln (Selling price) model is 0.471 which means it’s not even 1, so
this model can be considered. Whereas the Standard Error of estimate for Selling price model is
426186 which is quite higher. The estimates are more precise in Ln (selling Price) compared to
Selling price.

FORECASTING: