BUSINESS ANALYTICS

PROJECT REPORT

SUBMITTED BY: -

Group 7

Section D

SIDDHANT SRIVASTAVA - P22250

BHAVYA PRATAP SINGH – P22207

SAUMYA NIGAM – P22244

ADITYA BHANDARKAR – P22196

PUJA KUMARI – P22231

Introduction:

In our day-to-day lives, mobile phones have gained paramount importance, from
business calls to gossip with friends it has been with us for all the ups and downs in our life.
This has created an enormous demand in the market for this product. The market is
overflowing with different kinds of cell phones. And naturally, every cell phone comes with
its own price tag set by the respective companies. Here in this report, a dataset has been
analyzed that showcases the variety of specifications of different mobile brands along with
their selling prices. The specifications taken into consideration for the analysis are as follows:

 Battery Capacity
 Screen Size
 Resolution
 RAM Storage Size
 Internal Storage Size
 Rear Camera
 Front Camera
 Processor

Objective:

To analyze how much the above-mentioned specifications play a role in determining

the price of a phone using linear regression in MS Excel.

Working:

Test 1:

To start with, a linear regression was run in excel taking into account all the
specifications and the results were as follows:
 Regression Statistics
Multiple R 0.717118
R Square 0.514259
Adjusted R Square 0.511018
Standard Error 9690.168
Observations 1359

ANOVA
df SS MS F Significance F
Regression 9 1.34E+11 1.49E+10 158.6886 2.1E-204
Residual 1349 1.27E+11 93899348
Total 1358 2.61E+11

Coefficients
Standard Error t Stat
Intercept 691.9924 2959.871 0.233791
Battery capacity (mAh) -1.04114 0.463166 -2.24787
Screen size (inches) -553.55 748.7007 -0.73935
Rear camera -19.2959 42.36424 -0.45548
Front camera -468.322 65.49957 -7.15
Internal storage (GB) 174.1459 13.67794 12.73188
RAM (MB) 1.866568 0.395035 4.725075
Resolution x 5.238859 2.61568 2.002867
Resolution y 6.897907 1.521343 4.53409
Processor -761.565 170.5525 -4.46528
P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
0.815182 -5114.46 6498.443 -5114.46 6498.443
0.024745 -1.94974 -0.13253 -1.94974 -0.13253
0.459825 -2022.29 915.1947 -2022.29 915.1947
0.64884 -102.403 63.81106 -102.403 63.81106
1.42E-12 -596.814 -339.83 -596.814 -339.83
3.79E-35 147.3135 200.9782 147.3135 200.9782
2.54E-06 1.091619 2.641516 1.091619 2.641516
0.045391 0.107618 10.3701 0.107618 10.3701
6.3E-06 3.913451 9.882363 3.913451 9.882363
8.66E-06 -1096.14 -426.988 -1096.14 -426.988

Observation:

It can be seen that these attributes contribute approximately 51% in determining the
price of a cell phone. The standard error is 9690 and the screen size and rear camera do not
play a significant role in deciding the price.

Comparing to real life:

It is well known that the camera, resolution, and processor play a significant role in
determining the price of a phone [1].

Test 2:

To neutralize how significantly some specifications like the camera can affect the
price, a new approach is tested. Here we compare all the independent variables i.e., the
specifications to the logarithm of the selling price instead of just the selling price, and the
results are as follows:
 Regression Statistics
Multiple R 0.770073
R Square 0.593013
Adjusted R Square 0.590298
Standard Error 0.211807
Observations 1359

ANOVA
df SS MS F Significance F
Regression 9 88.18143 9.797937 218.4001 5.1E-256
Residual 1349 60.51929 0.044862
Total 1358 148.7007

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 3.297278 0.064697 50.96512 0 3.170361 3.424195 3.170361 3.424195
Battery capacity (mAh) -8.1E-06 1.01E-05 -0.80486 0.421043 -2.8E-05 1.17E-05 -2.8E-05 1.17E-05
Screen size (inches) 0.010651 0.016365 0.650853 0.515252 -0.02145 0.042755 -0.02145 0.042755
Rear camera 0.002486 0.000926 2.684194 0.007359 0.000669 0.004302 0.000669 0.004302
Front camera -0.00572 0.001432 -3.99713 6.76E-05 -0.00853 -0.00291 -0.00853 -0.00291
Internal storage (GB) 0.001339 0.000299 4.479114 8.13E-06 0.000753 0.001926 0.000753 0.001926
RAM (MB) 5.55E-05 8.63E-06 6.425489 1.82E-10 3.85E-05 7.24E-05 3.85E-05 7.24E-05
Resolution x 0.000256 5.72E-05 4.482713 7.99E-06 0.000144 0.000368 0.000144 0.000368
Resolution y 0.000159 3.33E-05 4.779501 1.95E-06 9.37E-05 0.000224 9.37E-05 0.000224
Processor -0.00687 0.003728 -1.84386 0.065422 -0.01419 0.000439 -0.01419 0.000439

Observation:

It is observed that now specifications contribute 59% in determining the price of a

phone which Is a significant improvement from 51% and the standard error has come down
from 9690 to 0.211. Also, the p-value of battery capacity and screen size is significantly high
indicating they do not contribute significantly in determining the price of a phone.

Test 3:

Battery capacity and screen size are not taken into consideration and the regression is run
again.

The results are as follows:

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.76993
R Square 0.592792
Adjusted R Square 0.590682
Standard Error 0.211708
Observations 1359

ANOVA
df SS MS F Significance F
Regression 7 88.1486 12.59266 280.9592 2.6E-258
Residual 1351 60.55213 0.04482
Total 1358 148.7007

Coefficients
Standard Error t Stat
Intercept 3.327985 0.020425 162.9362
Rear camera 0.002463 0.000922 2.671876
Front camera -0.00567 0.001404 -4.04017
Internal storage (GB) 0.001364 0.000297 4.588584
RAM (MB) 5.49E-05 8.53E-06 6.432785
Resolution x 0.000252 5.63E-05 4.47064
Resolution y 0.000163 3.19E-05 5.10678
Processor -0.00683 0.003616 -1.88914
P-value Lower 95%Upper 95%Lower 95.0%
U pper 95.0%
0 3.287916 3.368053 3.287916 3.368053
0.007634 0.000655 0.004272 0.000655 0.004272
5.64E-05 -0.00843 -0.00292 -0.00843 -0.00292
4.88E-06 0.000781 0.001948 0.000781 0.001948
1.73E-10 3.82E-05 7.16E-05 3.82E-05 7.16E-05
8.45E-06 0.000141 0.000362 0.000141 0.000362
3.75E-07 0.0001 0.000225 0.0001 0.000225
0.059086 -0.01393 0.000262 -0.01393 0.000262

Observation:

The p-value of the processor is still above 0.05 even though just by 0.009.

Conclusion:

 Since as a number, the prices were huge compared to internal storage or RAM, the
logarithm of price had to be taken to run the regression
 Once the logarithm was taken, the standard deviation came down exponentially and
the R square value increased from 0.51 to 0.59
 Screen size and battery capacity did not play a significant role in determining the
price of a phone
 In this analysis for some reason the p-value for the processor was slightly above 0.05
which also indicates that by a very small margin, the processor misses to play a
significant role in determining the price of a phone

References:

[1]
https://www.thejakartapost.com/life/2020/06/08/what-makes-up-smartphone-prices.html