Sales Price Mileage

Cars Top speed (Km/hr)

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

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

Q1: Identify IDV and DV

Dependent Variable Y Sales (in 1,000 units)
Independent Variable X Price, Mileage and Top Speed
The Multiple Regression Equation Y(Sales)= β0+β1(Price)+β2(Mileage)+β3(Top Speed)

Q2: Regression:
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.997880654505
R Square 0.995765800634
Adjusted R Square 0.995356039406
Standard Error 2.307791531967
Observations 35

ANOVA
df SS MS F Significance F
Regression 3 38827.618018737 12942.54 2430.11229551562 7.44727123E-37
Residual 31 165.10295440558 5.325902
Total 34 38992.720973143

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 50.72312717925 5.2921028847082 9.584683 8.7390238740411E-11 39.92981218617
Price -0.795026440875 0.2543330760432 -3.125926 0.00383346297701066 -1.31374216933
Mileage 8.306331092379 0.1001813068187 82.91298 5.7835637568169E-38 8.102009970045
Top Speed -0.018572563993 0.0305582354492 -0.607776 0.547763026123756 -0.08089649609

Q3: Check the Overall Significance of F Test (or P Value)

As per Regression Analysis, the Significance F for Rocinante Model is: 7.44727123E-37

F value is used to understand the influence of Independent variable on dependent variable. As F (7.44727E-
37)< P (0.05). Thus we say atleast one regression coefficient is non-zero

Q4: Check the P Values for Individual Independent Variables and identify the Significant
P- Values
Variables
Price 0.003833462977
Mileage 5.78356376E-38
Top Speed 0.547763026124

P Values for Price and Mileage < 0.05, thus we can say the regression coefficients are non zeroes, they're significant variables.
P Values for Top Speed> 0.05, thus we can say the regression coefficient is zero, they're insignificant variables.

Q5: Use Intercept, Significant β values and Variable Names to create regression equation.

Y (Sales) = 50.723127+(-0.795026440875324) x Price +

Regression Equation:
8.306331092379 x Mileage + 0 x Top Speed

Specifications Rocinante 36
Price 7 Lakh
Manufacturing cost 6 lakh
Mileage 22kmpl
Top Speed 140kmph
New Price 8 lakh

Y (Sales) = 50.723127-0.795026440875324 x Price +

Final Regression equation:
8.306331092379 x Mileage
Q5 Total Sales 227897
Q6 Profit Obtained: (Sales x (Price - Cost)) 227897
Q7 New Pricing: 8L
New Total Sales: 227102
Change in Sales -795

Q8: Regression with only Significant Variables

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.9978553735369
R Square 0.9957153464965
Adjusted R Square 0.9954475556525
Standard Error 2.2849391302616
Observations 35

ANOVA
df SS MS F
Regression 2 38825.65 19412.8253373074 3718.257621295
Residual 32 167.0703 5.2209468290004
Total 34 38992.72

Coefficients Standard Error t Stat P-value

Intercept 47.779964019197 2.113441 22.6076595052896 3.03812605E-21
Price
(in lakh rupees) -0.782925327667 0.251042 -3.1187052522431 0.003827345185
Mileage
(Km/ltr) 8.2944664974274 0.097288 85.2568906128974 2.60256971E-39
 Upper 95% Lower 95.0% Upper 95.0%
61.5164422 39.929812186 61.516442172
-0.2763107 -1.313742169 -0.2763107124
8.51065221 8.10200997 8.5106522147
0.04375137 -0.080896496 0.0437513681

ey're significant variables.

0875324 x Price +
leage

Significance F
1.2902E-38

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

43.4750247 52.084903318 43.47502472 52.0849

-1.2942807 -0.271569949 -1.2942807064 -0.27157

8.09629747 8.4926355281 8.0962974667 8.492636

 Sales Price Mileage Top speed Price Top
Cars (in lakh speed
(in 1,000 units) (in lakh rupees) (Km/ltr) (Km/hr)
rupees) (Km/hr)
Marengo 1 20.896 42.5 9.3 199.4 42.5 199.4
Marengo 2 31.048 36 9.7 235.2 36 235.2
Marengo 3 29.904 54.7 16.6 240.8 54.7 240.8
Marengo 4 28.792 42.7 11.7 232.5 42.7 232.5
Marengo 5 16.776 44.9 13.7 188.8 44.9 188.8
Marengo 6 18.928 35.5 9.6 184.2 35.5 184.2
Marengo 7 22.776 51.3 13.7 207.7 51.3 207.7
Marengo 8 36.824 30.4 12.6 249.5 30.4 249.5
Marengo 9 22.216 38.4 16.2 175.8 38.4 175.8
Marengo 10 35.456 32.2 9.6 245.6 32.2 245.6
Marengo 11 28.576 59.4 11.3 223.3 59.4 223.3
Marengo 12 33.648 50.8 13.6 240 50.8 240
Marengo 13 33.44 57.5 13.5 250 57.5 250
Marengo 14 34.912 44.6 11.1 247.4 44.6 247.4
Marengo 15 24.016 34.6 14.1 192 34.6 192
Marengo 16 20.992 56.4 13.4 201.2 56.4 201.2
Marengo 17 21.696 41.4 12.8 193.3 41.4 193.3
Marengo 18 17.832 53.7 16 202 53.7 202
Marengo 19 25.624 44.8 12.7 208.9 44.8 208.9
Marengo 20 21.92 32.4 13.6 176.9 32.4 176.9
Marengo 21 24.792 40.9 11.6 218.2 40.9 218.2
Marengo 22 22.256 44.1 11.4 190 44.1 190
Marengo 23 15.488 46.6 16.3 176.8 46.6 176.8
Marengo 24 21.64 31.4 14.5 178.9 31.4 178.9
Marengo 25 23.264 54.7 14.3 192.3 54.7 192.3
Marengo 26 19.328 37.9 9.4 184.1 37.9 184.1
Marengo 27 27.216 52.9 15.3 240.3 52.9 240.3
Marengo 28 23.096 42.7 15 192.1 42.7 192.1
Marengo 29 17.824 54.9 13.5 199 54.9 199
Marengo 30 19.144 44 11.8 181.1 44 181.1
Marengo 31 21.6 42.2 9.3 181.2 42.2 181.2

Q1: Identify IDV and DV

Dependent Variable Y Sales (in 1,000 units)
Independent Variable X Price, Mileage and Top Speed
The Multiple Regression Equation Y(Sales)= β0+β1(Price)+β2(Mileage)+β3(Top Speed)

Q2: Regression:

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.929025133176
R Square 0.863087698072
Adjusted R Sq 0.84787522008
Standard Erro 2.306730395122
Observations 31

ANOVA
df SS MS F Significance F
Regression 3 905.669817744951 301.889939 56.73551005 8.745E-12
Residual 27 143.667138126017 5.32100512
Total 30 1049.33695587097

Coefficients Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%

Intercept -13.4476488883 4.45379402893311 -3.0193693 0.005478963 -22.58608 -4.309218 -22.58608
Price
(in lakh
rupees) -0.18672817212 0.055438363262194 -3.3682122 0.002288377 -0.300478 -0.072978 -0.300478
Mileage
(Km/ltr) 0.041301186989 0.206640301103274 0.19986995 0.843080034 -0.38269 0.465292 -0.38269
Top speed (Km0.220801682039 0.017223150084434 12.8200521 5.38827E-13 0.185463 0.256141 0.185463

F value is used to understand the influence of Independent variable on dependent

variable. As F (7.44727E-37)< P (0.05). Thus we say atleast one regression coefficient is
non-zero
Q3: Check the P Values for Individual Independent Variables and identify the
P- Values
Significant Variables
Price 0.002288
Mileage 0.84308
Top Speed 5.388E-13

P Values for Price and Top Speed< 0.05, thus we can say the regression coefficients are non zeroes, they're significant variable
P Values for Mileage> 0.05, thus we can say the regression coefficient is zero, they're insignificant variables.

Q4: Use Intercept, Significant β values and Variable Names to create regression equation.

Y (Sales) = -13.44765+(-0.18673) x Price + 0.0413011 x

Regression Equation:
Mileage + 0.220801680 x Top Speed

SpecificationsMarengo 32
Price 41 Lakh
Manufacturing33 lakh
Mileage 15 kmpl
Top Speed 210 kmph
New Price 42 lakh
 Y (Sales) = -13.44765+(-0.18673) x Price +
Final Regression equation:
0.0413011 x Top Speed

Q5 Total Sales 25265

Q6 Profit Obtained: (Sales x (Price - Cost)) 202119
Q7 New Pricing: 42
New Total Sales: 25078
Change in Sales -187

Q8: Regression with only Significant Variables

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.928916104246107
R Square 0.862885128727765
Adjusted R Square 0.853091209351177
Standard Error 2.26683937947473
Observations 31

ANOVA
df SS MS F Significance F
Regression 2 905.457254 452.7286271 88.10417 8.302E-13
Residual 28 143.879702 5.138560772
Total 30 1049.33696

Coefficients Standard Error t Stat P-value Lower 95%Upper 95%

Intercept -12.97013136159 3.69375976 -3.511363 0.001531 -20.53646 -5.403807
Price
(in lakh rupees) -0.182473820184809 0.05030398 -3.62742313 0.00113 -0.285517 -0.079431
Top speed (Km/hr 0.220139890440022 0.01660959 13.25378439 1.38E-13 0.186117 0.254163
 Upper 95.0%
-4.309218

-0.072978

0.465292
0.256141

ey're significant variables.

Lower 95.0%
Upper 95.0%
-20.53646 -5.403807

-0.285517 -0.079431
0.186117 0.254163