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ProjectTemplate - Lavesh Kewlani
ProjectTemplate - Lavesh Kewlani
ProjectTemplate - Lavesh Kewlani
Submission
Name – Lavesh Kewlani
Q-1a) Formulate the null hypotheses to check whether the new models are
performing as per the desired design specifications.
Rocinante36 will have the bigger impact with the price increase.
Sales : The sales will drop for Rocinante36 (~795 units) and Marengo32 (~187 units). Looking at
the numbers Rocinante36 has bigger impact in the drop of sales.
Profits: The profits for Rocinante36 will increase to ~4542 Crores and for Marengo32 will
increase to ~2358 Crores. Rocinante36 will get a huge profit compared to Marengo32.
Q-8) After developing the regression equation for both models (Rocinante and Marengo), if you
analyse the p values for coefficients in the regression results, you will notice that some of the
regression variables (top speed, mileage and price) are insignificant. Remove the insignificant
regression variables from your selection and rebuild the regression model using only significant
variables. Compare the Adjusted R square value for the new and old regression model. Do you
notice any change in Adjusted R square value? If yes, explain the reason for the change.
There is an insignificant increase in the adjusted R−Square value. Adjusted R Square value describes the
percentage of variance of the independent variables that affect the dependent variable. Since there is
minimal change in the adjusted R square value, we conclude that the insignificant variable slightly or does
not affect the sales of cars.