Sales Price Mileage Top

Cars speed
(in 1,000 units) (in lakh rupees) (Km/ltr)
(Km/hr)
Rocinante 1 171.877 6.1 15.8 168.2 Q4
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 Q4a
Rocinante 6 192.123 6.5 17.6 173.1 Intercept
Rocinante 7 175.085 5.5 16 184.6 Price (in lakh rupees)
Rocinante 8 146.882 8.4 13 175.7 Mileage (Km/ltr)
Rocinante 9 202.847 6.6 19.3 166.7 Top speed (Km/hr)
Rocinante 10 149.933 8.8 13.3 175.4
Rocinante 11 171.579 9.5 15.8 150.9 Q4b
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 Q4c
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 Q5
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 Q6
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 Q7
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

Q8
 Sales = βo + β1*Price +β2*Mileage + β3* Top Speed
Y = βo + β1X1 +β2X2 + β3X3

Beta Coefficients P value

50.7231271792463 0
-0.795026440875324 0.00383346297701066
8.30633109237939 0
-0.0185725639929489 0.547763026123756

Regression Equation
Sales = 50.7231 - 0.7950*Price + 8.3063*Mileage

Predicted Sales ( in 1000 units) 227.897

Predicted Sales ( in units) 227,897

Sales ( units) 227,897

Manufacturing cost ( lakh ₹) 6
Price ( lakh ₹) 7
Profit ( lakh ₹) 227,897

Which model should we invest? Rocinante36 as Profit Rocinante36> Profit Marengo32

Profit ( lakh ₹) Rocinante36 227,897
Profit ( lakh ₹) Marengo32 202,126

Suppose you increase the price of Rocinante36 and Marengo32 by ₹1 lakh each. Which of the two models will have to s
on sales numbers?
Rocinante36
Regression Equation Sales = 50.7231 - 0.7950*Price + 8.3063*Mileage
old sales 227,897
new sales 227,102
Change in sales -795
Which design is impacted more? Rocinante36
Why? For Price variable: Rocinante36 model has a higher value of Regression Coefficient than
Regression Coefficient of Price -0.795

New Regression Model:

SUMMARY OUTPUT
 Regression Statistics
Multiple R 0.997855373536924
R Square 0.995715346496514
Adjusted R Square 0.995447555652547
Standard Error 2.28493913026155
Observations 35

ANOVA
df
Regression 2
Residual 32
Total 34

Coefficients
Intercept 47.7799640191966
Price
(in lakh rupees) -0.782925327667118
Mileage
(Km/ltr) 8.29446649742739

Parameter All variables (Old model)

Adjusted R Square 0.995356039405525

The adjusted R Square increase in the new model with significant variables.
Reason for the change: Adjusted R Square increased since removed the variable is insignificant.
 Significance? (p<0.05 => sign)
always SUMMARY OUTPUT
sign
sign Regression Statistics
not sign Multiple R 0.997880654505
R Square 0.995765800634
Adjusted R Square 0.99535603941
Standard Error 2.307791531967
Observations 35

ANOVA
df
Regression 3
Residual 31
Total 34

Coefficients
Intercept 50.72312717925
Price (in lakh rupees) -0.79502644088
Mileage (Km/ltr) 8.306331092379
Top speed (Km/hr) -0.01857256399

ach. Which of the two models will have to see a higher impact
s?
Marengo32
Sales = -13.4476 - 0.1867*Price + 0.2208*Top speed
25,266
25,079
-187
Rocinante36
a higher value of Regression Coefficient than Marengo32 model
-0.1867
 SS F Significance F
38825.6506746148 3718.258 1.290182973092E-38
167.070298528013
38992.7209731429

Standard Error P-value Lower 95% Upper 95%

2.11344142050695 3.04E-21 43.4750247203163 52.08490331808

0.251041783157933 0.003827 -1.29428070638319 -0.27156994895

0.0972879310727833 2.6E-39 8.09629746670899 8.492635528146

Significant variables (New model)

0.995447555652547

is insignificant.
 SS MS F Significance F
38827.62 12942.54 2430.112 7.447E-37
165.103 5.325902
38992.72

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

5.292103 9.584683 8.739E-11 39.92981 61.51644 39.92981 61.51644
0.254333 -3.125926 0.003833 -1.313742 -0.276311 -1.313742 -0.276311
0.100181 82.91298 5.784E-38 8.10201 8.510652 8.10201 8.510652
0.030558 -0.607776 0.547763 -0.080896 0.043751 -0.080896 0.043751
Lower 95.0%
Upper 95.0%
43.47502 52.0849

-1.294281 -0.27157

8.096297 8.492636
 Sales Price Mileage Top Price
Cars speed (in lakh
(in 1,000 units) (in lakh rupees) (Km/ltr)
(Km/hr) rupees)
Marengo 1 20.896 42.5 9.3 199.4 42.5
Marengo 2 31.048 36 9.7 235.2 36
Marengo 3 29.904 54.7 16.6 240.8 54.7
Marengo 4 28.792 42.7 11.7 232.5 42.7
Marengo 5 16.776 44.9 13.7 188.8 44.9
Marengo 6 18.928 35.5 9.6 184.2 35.5
Marengo 7 22.776 51.3 13.7 207.7 51.3
Marengo 8 36.824 30.4 12.6 249.5 30.4
Marengo 9 22.216 38.4 16.2 175.8 38.4
Marengo 10 35.456 32.2 9.6 245.6 32.2
Marengo 11 28.576 59.4 11.3 223.3 59.4
Marengo 12 33.648 50.8 13.6 240 50.8
Marengo 13 33.44 57.5 13.5 250 57.5
Marengo 14 34.912 44.6 11.1 247.4 44.6
Marengo 15 24.016 34.6 14.1 192 34.6
Marengo 16 20.992 56.4 13.4 201.2 56.4
Marengo 17 21.696 41.4 12.8 193.3 41.4
Marengo 18 17.832 53.7 16 202 53.7
Marengo 19 25.624 44.8 12.7 208.9 44.8
Marengo 20 21.92 32.4 13.6 176.9 32.4
Marengo 21 24.792 40.9 11.6 218.2 40.9
Marengo 22 22.256 44.1 11.4 190 44.1
Marengo 23 15.488 46.6 16.3 176.8 46.6
Marengo 24 21.64 31.4 14.5 178.9 31.4
Marengo 25 23.264 54.7 14.3 192.3 54.7
Marengo 26 19.328 37.9 9.4 184.1 37.9
Marengo 27 27.216 52.9 15.3 240.3 52.9
Marengo 28 23.096 42.7 15 192.1 42.7
Marengo 29 17.824 54.9 13.5 199 54.9
Marengo 30 19.144 44 11.8 181.1 44
Marengo 31 21.6 42.2 9.3 181.2 42.2
Q4 Sales = βo + β1*Price +β2*Mileage + β3* Top Speed
Y = βo + β1X1 +β2X2 + β3X3

Q4a Beta Coefficients

Intercept -13.4476488883451
Price (in lakh rupees) -0.186728172116573
Mileage (Km/ltr) 0.0413011869886482
Top speed (Km/hr) 0.22080168203862

Q4b Regression Equation

Sales = -13.4476 - 0.1867*Price + 0.2208*Top Speed

Q4c Predicted Sales ( in 1000 units)

Predicted Sales ( in units)

Q5
Sales ( units)
Manufacturing cost ( lakh ₹)
Price ( lakh ₹)
Profit ( lakh ₹)

Q6
Which model should we invest?
Profit ( lakh ₹) Rocinante36
Profit ( lakh ₹) Marengo32

Q7 Suppose you increase the price of Rocinante36 and Marengo32 by ₹1 lakh each. Wh
sales numbers?

Regression Equation
old sales
new sales
Change in sales
Which design is impacted more?
Why?
Regression Coefficient of Price

Q8 New Regression Model:

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
Regression 2
Residual 28
Total 30

Coefficients
Intercept -12.97013136159
Top speed (Km/hr) 0.220139890440022
Price
(in lakh rupees) -0.182473820184809

Parameter All variables (Old model)

Adjusted R Square 0.847875220080421

The adjusted R Square increase in the new model with significant variables.
Reason for the change: Adjusted R Square increased since removed the variable is insignificant.
es = βo + β1*Price +β2*Mileage + β3* Top Speed
Y = βo + β1X1 +β2X2 + β3X3

P value
0.00547896316725023
0.00228837673380118
0.843080033902266
5.38827494361743E-13

es = -13.4476 - 0.1867*Price + 0.2208*Top Speed

25.266
25,266

25,266
33
41
202,126

Rocinante36 as Profit Rocinante36> Profit Marengo32

227,897
202,126

the price of Rocinante36 and Marengo32 by ₹1 lakh each. Which of the two models will have to see a higher impact on
sales numbers?

Rocinante36
Sales = 50.7231 - 0.7950*Price + 8.3063*Mileage
227,897
227,102
-795
Rocinante36
For Price variable: Rocinante36 model has a higher value of Regression Coefficient than Marengo32 model
-0.795
 SS
905.45725424552
143.879701625447
1049.33695587097

Standard Error
3.69375976376271
0.0166095874144

0.050303979958483

Significant variables (New model)

0.853091209351177

ificant variables.
emoved the variable is insignificant.
 SUMMARY OUTPUT

Regression Statistics
Significance? (p<0.05 => sign) Multiple R 0.9290251332
always R Square 0.8630876981
sign Adjusted R Square 0.8478752201
not sign Standard Error 2.3067303951
sign Observations 31

ANOVA
df
Regression 3
Residual 27
Total 30

Coefficients
Intercept
Price -13.44764889
(in lakh rupees)
Mileage -0.186728172
(Km/ltr) 0.041301187
Top speed (Km/hr) 0.220801682

each. Which of the two models will have to see a higher impact on
rs?

Marengo32
Sales = -13.4476 - 0.1867*Price + 0.2208*Top speed
25,266
25,079
-187
Rocinante36
s a higher value of Regression Coefficient than Marengo32 model
-0.1867
 MS F Significance F
452.72862712276 88.10417 8.30202130911E-13
5.13856077233738

t Stat P-value Lower 95% Upper 95%

-3.51136299897798 0.001531 -20.5364552417575 -5.403807481
13.2537843925712 1.38E-13 0.186116692958093 0.2541630879

-3.62742312507697 0.00113 -0.28551685199249 -0.079430788

 SS MS F Significance F
905.6698 301.8899 56.73551 8.745E-12
143.6671 5.321005
1049.337

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

4.453794 -3.019369 0.005479 -22.58608 -4.309218 -22.58608 -4.309218
0.055438 -3.368212 0.002288 -0.300478 -0.072978 -0.300478 -0.072978
0.20664 0.19987 0.84308 -0.38269 0.465292 -0.38269 0.465292
0.017223 12.82005 5.388E-13 0.185463 0.256141 0.185463 0.256141
Lower 95.0%
Upper 95.0%
-20.53646 -5.403807
0.186117 0.254163

-0.285517 -0.079431