Data Collection and Cleaning Process:

Data Source:

The dataset utilized for this study was provided by the supervisor and encompasses a comprehensive set
of variables related to automotive attributes, pricing, and sales.

Variables:

The primary variables include Price, Sale, BRAND, BRAND_CATEGORIES, AUDI_MODELS,

YEAR_CAR_NAMES, and numerous other factors contributing to the hedonic model.

Sampling:

No specific sampling process was employed, as the dataset covers a diverse range of Audi car models and
variations.

Data Taking Process:

 The dataset was loaded into Stata using standard commands, ensuring accurate representation of
each variable.

 Data import scripts and Stata commands were implemented to facilitate a seamless data loading
process.

Data Cleaning:

 Handling Missing Values:

 Missing values were identified and addressed through appropriate imputation methods,
preserving the integrity of the dataset.

 Outlier Detection:

 Outliers were identified based on predefined criteria and subjected to further scrutiny.

 Data Transformation:

 Variables underwent necessary transformations to ensure consistency and suitability for

regression analysis.
Hedonic Regression Analysis:

Specification of the Model:

The hedonic regression equation employed in the analysis is as follows: Price=β0+β1⋅BRAND+β2

⋅BRAND_CATEGORIES+β3⋅AUDI_MODELS+β4⋅YEAR_CAR_NAMES+...+ε

Regression Analysis:

 Stata commands were used to execute the regression analysis, producing coefficients for each
variable.

 Key coefficients, such as those for BRAND and BRAND_CATEGORIES, were interpreted for
their impact on pricing and sales.

Graphical Analysis:

Data Visualization:

 Various graphical representations, including scatter plots and histograms, were employed to
visually explore relationships between brand-related variables and pricing/sales.

Validity Checks:

Business Interpretation:

 Results were cross-validated with business expectations to ensure the practical relevance of
coefficients.

Mathematical Representation:

Hedonic Model Equation:

Price=β0+β1⋅BRAND+β2⋅BRAND_CATEGORIES+β3⋅AUDI_MODELS+β4⋅YEAR_CAR_NAMES+...+ε

Limitations:

Data Limitations:

 Any limitations related to missing or incomplete data were acknowledged.

Methodological Limitations:

 Assumptions of the hedonic model were considered in evaluating the study's scope.
 HYPOTHESIS

Impact of Brand Transformation on Automotive Pricing and Sales

Null Hypothesis (H₀):

H0: βBRAND_TRANSFORMATION=0

The brand transformation coefficient (βBRAND_TRANSFORMATION) has no significant impact on

automotive pricing.

Alternative Hypothesis (H₁):

H1: βBRAND_TRANSFORMATION != 0

The brand transformation coefficient (βBRAND_TRANSFORMATION) has a significant impact on

automotive pricing.

Expected Result:

If the p-value associated with βBRAND_TRANSFORMATION is less than the predetermined significance
level (typically 0.05), we reject the null hypothesis, indicating that brand transformation significantly
influences automotive pricing.

Regression Table Header

Coefficient Variable Hypothesis Expected Result

β0 Intercept - -

βBRAND_TRANSFORMATION Brand Transformation H0:βBRAND_TRANSFORMATION=0 Reject if p < 0.05

βOTHER_VARIABLES Other Relevant Variables - Varies based on context

This hypothesis focuses on evaluating the specific impact of brand transformation on automotive pricing.
The null hypothesis posits that brand transformation has no significant effect, while the alternative
hypothesis suggests the opposite. The expected result interprets the outcome based on the p-value, with
rejection of the null hypothesis indicating a significant influence of brand transformation on pricing. The
table header outlines the key coefficients, variables, corresponding hypotheses, and the anticipated results
for clear interpretation.