Top

Sales Price Mileage

Cars speed
(in 1,000 units) (in lakh rupees) (Km/ltr)
(Km/hr)

Rocinante 1 171.877 6.1 15.8 168.2

Rocinante 2 139.796 6.1 12.1 149.6
Rocinante 3 178.947 9.9 17 173.4
Rocinante 4 140.022 5.8 11.6 170.6
Rocinante 5 186.476 10 17.2 175
Rocinante 6 192.123 6.5 17.6 173.1
Rocinante 7 175.085 5.5 16 184.6
Rocinante 8 146.882 8.4 13 175.7
Rocinante 9 202.847 6.6 19.3 166.7
Rocinante 10 149.933 8.8 13.3 175.4
Rocinante 11 171.579 9.5 15.8 150.9
Rocinante 12 201.512 9.2 19.2 140.5
Rocinante 13 142.604 8.1 11.7 150.2
Rocinante 14 135.158 5.4 11.2 146.2
Rocinante 15 107.322 5.6 7.8 151.2
Rocinante 16 199.699 6.3 19 143.2
Rocinante 17 202.875 5.8 19.7 178.9
Rocinante 18 204.406 7.7 19.5 168.2

Rocinante 19 107.331 7.2 7.5 164.7

Rocinante 20 190.345 8.4 18.1 182.7

Rocinante 21 108.419 8.4 7.9 165.7
Rocinante 22 150.249 5.7 12.6 137
Rocinante 23 155.882 5.5 12.9 173.9
Rocinante 24 100.98 8.4 7.6 165.1
Rocinante 25 182.679 5.6 16.7 160.1
Rocinante 26 166.752 9.9 15.5 155.6
Rocinante 27 121.561 6.2 9.5 155.4
Rocinante 28 174.256 9.9 16.3 161.9
Rocinante 29 119.018 6.5 9.1 146.8
Rocinante 30 169.842 7.1 15.3 149.5
Rocinante 31 198.311 9.6 19.1 146.5
Rocinante 32 204.875 5.8 19.4 178.9
Rocinante 33 119.561 6.2 9.4 175.4
Rocinante 34 203.875 5.9 19.4 175.9
Rocinante 35 118.561 6.1 9.4 165.4
Y=B0 + B1X1 + B2X2 + B3X3
Sales = B0 + B1*Price + B2*Mileage + B3*Top Speed
SUMMARY OUTPUT (From Data Analysis Tool pak)

Regression Statistics
Multiple R 0.9978806545
R Square 0.9957658006
Adjusted R Square 0.9953560394
Standard Error 2.307791532
Observations 35

ANOVA
df SS MS F
Regression 3 38827.61801874 12942.53933958 2430.112
Residual 31 165.1029544056 5.325901755019
Total 34 38992.72097314

Coefficients Standard Error t Stat P-value

Intercept 50.723127179 5.292102884708 9.584682740355 8.739E-11
Price
(in lakh rupees) -0.795026441 0.254333076043 -3.12592625876 0.003833
Mileage
(Km/ltr) 8.3063310924 0.100181306819 82.91298403019 5.784E-38
Top speed (Km/hr) -0.018572564 0.030558235449 -0.60777606167 0.547763

Q4:A - Regression equation for each model at a 95% confidence level

Coefficients P Value Significance

Bo (Intercept) 50.723127179 0.000 Always
B1 (Price) -0.795026441 0.004 Significant
B2 (Mileage) 8.3063310924 0.000 Significant
B3 (Top Speed) -0.018572564 0.548 Not Significant

Regression Equation: Sales = 50.723 - 0.795*Price + 8.306*Mileage

Q4:B - Predict the sales

Coefficients Variables
Bo (Intercept) 50.723127179
B1 (Price) -0.795026441 X1 (Price) 7
B2 (Mileage) 8.3063310924 X2 (Mileage) 22
B3 (Top Speed) -0.018572564 X3 (Top Speed) 140

Predicted Sales = 50.723 - 0.795*Price + 8.306*Mileage

Overall Predicted Sales: 227897.22613 Units
Q4:C - Hypothesis assumption for the overall test and individual variables
Price and Mileage have signficant relationship with sale. However, Top Speed doesn't have significant relationship

Q5: Caculate Overall Projected Profit

Price 7 (In lakh rupees)
Manufacturing cost 6 (In lakh rupees)
Profit = Sales * (Price-Cost)
Overall Predicted Profit: 227897.22613 (In lakh rupees)

Q7: Caculate Overall Projected Profit with revised Price

Revised Price 8 (In lakh rupees)
Manufacturing cost 6 (In lakh rupees)
Mileage 22 Km/ltr
Top Speed 140 Km/hr
Regression Equation: Sales = 50.723 - 0.795*Price + 8.306*Mileage
Previously Predicted Sales 227897.22613 Units
New Predicted Sales 227102.19968 Units

Q8: Re-run regression with only significant variables

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9978553735
R Square 0.9957153465
Adjusted R Square 0.9954475557
Standard Error 2.2849391303
Observations 35

ANOVA
df SS MS F
Regression 2 38825.65067461 19412.82533731 3718.258
Residual 32 167.070298528 5.220946829
Total 34 38992.72097314

Coefficients Standard Error t Stat P-value

Intercept 47.779964019 2.113441420507 22.60765950529 3.038E-21
Price
(in lakh rupees) -0.782925328 0.251041783158 -3.11870525224 0.003827
Mileage
(Km/ltr) 8.2944664974 0.097287931073 85.2568906129 2.603E-39

All variable Only Significant variable

R Square 0.9957658006 0.995715346497
Adjusted R Square 0.9953560394 0.995447555653
 Reference Table 1
Specification
Rocinante36 Marengo32
s
Price ₹7 lakh ₹41 lakh
Manufacturin
₹6 lakh ₹33 lakh
g cost
Mileage 22 km/litre 15 km/litre
Top speed 140 km/hr 210 km/hr

Significance F
7.4472712E-37

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

39.929812186 61.516442172 39.929812186 61.516442172

-1.3137421693 -0.276310712 -1.313742169 -0.276310712

8.10200997 8.5106522147 8.10200997 8.5106522147

-0.0808964961 0.0437513681 -0.080896496 0.0437513681
t have significant relationship

Significance F
1.290183E-38

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

43.47502472 52.084903318 43.47502472 52.084903318

-1.2942807064 -0.271569949 -1.294280706 -0.271569949

8.0962974667 8.4926355281 8.0962974667 8.4926355281

 Sales Price Top Mileage
Cars speed
(in 1,000 units) (in lakh rupees) (Km/ltr)
(Km/hr)

Marengo 1 20.896 42.5 199.4 9.3

Marengo 2 31.048 36 235.2 9.7
Marengo 3 29.904 54.7 240.8 16.6
Marengo 4 28.792 42.7 232.5 11.7
Marengo 5 16.776 44.9 188.8 13.7
Marengo 6 18.928 35.5 184.2 9.6
Marengo 7 22.776 51.3 207.7 13.7
Marengo 8 36.824 30.4 249.5 12.6
Marengo 9 22.216 38.4 175.8 16.2
Marengo 10 35.456 32.2 245.6 9.6
Marengo 11 28.576 59.4 223.3 11.3
Marengo 12 33.648 50.8 240 13.6
Marengo 13 33.44 57.5 250 13.5
Marengo 14 34.912 44.6 247.4 11.1
Marengo 15 24.016 34.6 192 14.1
Marengo 16 20.992 56.4 201.2 13.4
Marengo 17 21.696 41.4 193.3 12.8
Marengo 18 17.832 53.7 202 16

Marengo 19 25.624 44.8 208.9 12.7

Marengo 20 21.92 32.4 176.9 13.6

Marengo 21 24.792 40.9 218.2 11.6
Marengo 22 22.256 44.1 190 11.4
Marengo 23 15.488 46.6 176.8 16.3
Marengo 24 21.64 31.4 178.9 14.5
Marengo 25 23.264 54.7 192.3 14.3
Marengo 26 19.328 37.9 184.1 9.4
Marengo 27 27.216 52.9 240.3 15.3
Marengo 28 23.096 42.7 192.1 15
Marengo 29 17.824 54.9 199 13.5
Marengo 30 19.144 44 181.1 11.8
Marengo 31 21.6 42.2 181.2 9.3
Y=B0 + B1X1 + B2X2 + B3X3
Sales = B0 + B1*Price + B2*Mileage + B3*Top Speed
SUMMARY OUTPUT (From Data Analysis Tool pak)

Regression Statistics
Multiple R 0.9290251332
R Square 0.8630876981
Adjusted R Square 0.8478752201
Standard Error 2.3067303951
Observations 31

ANOVA
df SS MS F
Regression 3 905.669817745 301.8899392483 56.73551
Residual 27 143.667138126 5.321005115778
Total 30 1049.336955871

Coefficients Standard Error t Stat P-value

Intercept -13.44764889 4.453794028933 -3.01936928403 0.005479
Price
(in lakh rupees) -0.186728172 0.055438363262 -3.36821221134 0.002288
Mileage
(Km/ltr) 0.041301187 0.206640301103 0.199869951641 0.84308
Top speed (Km/hr) 0.220801682 0.017223150084 12.82005213658 5.388E-13

Q4:A - Regression equation for each model at a 95% confidence level

Coefficients P Value Significance

Bo (Intercept) -13.44764889 0.005 Always
B1 (Price) -0.186728172 0.002 Significant
B2 (Mileage) 0.041301187 0.843 Not Significant
B3 (Top Speed) 0.220801682 0.000 Significant

Regression Equation: Sales =-13.447 - 0.187*Price + 0.221*Top Speed

Q4:B - Predict the sales

Coefficients Variables
Bo (Intercept) -13.44764889
B1 (Price) -0.186728172 X1 (Price) 41
B2 (Mileage) 0.041301187 X2 (Mileage) 15
B3 (Top Speed) 0.220801682 X3 (Top Speed) 210
Predicted Sales = 13.447 - 0.187*Price + 0.221*Top Speed
Overall Predicted Sales: 25264.849283 Units

Q4:C - Hypothesis assumption for the overall test and individual variables
Price and Top Speed have signficant relationship with sale. However, Mileage doesn't have significant relationship

Q5: Caculate Overall Projected Profit

Price 41 (In lakh rupees)
Manufacturing cost 33 (In lakh rupees)
Profit = Sales * (Price-Cost)
Overall Predicted Profit: 202118.79426 (In lakh rupees)

Q7: Caculate Overall Projected Profit

Revised Price 42 (In lakh rupees)
Manufacturing cost 33 (In lakh rupees)
Mileage 15 Km/ltr
Top Speed 210 Km/hr
Regression Equation: Sales = -13.447 - 0.187*Price + 0.221*Top Speed
Previously Predicted Sales 25264.849283 Units
New Predicted Sales 25078.121111 Units

Q8: Rerun regression with only significant variables

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9289161042
R Square 0.8628851287
Adjusted R Square 0.8530912094
Standard Error 2.2668393795
Observations 31

ANOVA
df SS MS F
Regression 2 905.4572542455 452.7286271228 88.10417
Residual 28 143.8797016254 5.138560772337
Total 30 1049.336955871

Coefficients Standard Error t Stat P-value

Intercept -12.97013136 3.693759763763 -3.51136299898 0.001531
Price
(in lakh rupees) -0.18247382 0.050303979958 -3.62742312508 0.00113
Top speed (Km/hr) 0.2201398904 0.016609587414 13.25378439257 1.38E-13

All variable Only Significant variable

R Square 0.8630876981 0.862885128728
Adjusted R Square 0.8478752201 0.853091209351
 Reference Table 1
Specification
Rocinante36
s
Price ₹7 lakh
Manufacturin
₹6 lakh
g cost
Mileage 22 km/litre
Top speed 140 km/hr

Significance F
8.7448816E-12

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

-22.586079391 -4.309218386 -22.58607939 -4.309218386

-0.3004782976 -0.072978047 -0.300478298 -0.072978047

-0.3826896887 0.4652920627 -0.382689689 0.4652920627

0.1854626971 0.256140667 0.1854626971 0.256140667
t have significant relationship

Significance F
8.3020213E-13

Lower 95% Upper 95% Lower 95.0% Upper 95.0%

-20.536455242 -5.403807481 -20.53645524 -5.403807481

-0.285516852 -0.079430788 -0.285516852 -0.079430788

0.186116693 0.2541630879 0.186116693 0.2541630879
erence Table 1
Marengo32

₹41 lakh

₹33 lakh

15 km/litre
210 km/hr
Models Rocinante36 Marengo32 Difference
Overall Predicted Profit: 227,897.23 202,118.79 25,778.43

Models Initial Price Increased Price Difference

Rocinante36 (In Units) 227,897.23 227,102.20 (795.03)
Marengo32 (In Units) 25,264.85 25,078.12 (186.73)

Rocinante36 Marengo32
Before After Difference (After-Before) Before
R Square 0.9958 0.9957 -0.0001 0.8631
Adjusted R Square 0.9954 0.9954 0.0001 0.8479
 Marengo32
After Difference (After-Before)
0.8629 -0.0002
0.8531 0.0052