Statistics Project

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Analysis of asking prices for used Mustangs

Influence of various options on the asking price

To: Mr. Tom Jones, Manager of Tom’s Used Cars

Date: 15 April 2012

By: Saleh Saleh, Manager of Saleh Research Firm

Datalytics Research Firm— 91 Marbrooke Cir N.E, Calgary, AB, Canada T2A 2W7

T: +1 403 991 5631 E: saleh_qit@hotmail.com

Executive Summary

In this report, we attempted to determine whether or not there is a positive relationship between the mean asking price of used Ford Mustang’s does not depend on whether the car is a convertible, the transmission type, presence or absence of air conditioning, GT model or not, and private versus dealer ownership.

Then we tried to determine if the mean selling price varies with color of the car.

The deeper purpose of this analysis is to find a reasonable model of asking price on the variables available in the data set you have provided and to show which variables are significantly affecting the price. This model can help you in setting the prices for the used Mustangs in the near future.

In my initial model, we considered nine total variables that could possibly impact the asking price of used Mustang’s, including Convertible, Vehicle Age, GT Model, Mileage, Transmission type, Air Conditioner, number of Cylinder, Color or the car and the Owner type. After running our initial regression, we noticed that only Convertible, Vehicle Age and GT Model impacted the asking price. Before dropping the other six variables, we tested for Best Subsets. The test revealed that the options of Number of Cylinder was as well affecting the asking price of the Used Mustang’s.. However, instead of dropping all six variables, we only dropped five and kept the number of Cylinder in the final model as it has increased the fitness of it. The final model passed the statistical tests, which help establish this model as a fairly strong one.

Contents

Executive Summary 2

Introduction 4

Background 4

Data 4

Problem Statement and...