Sales Price Mileage Top speed

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

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
Specifications Rocinante36 Marengo32
Price ( in lakh ) 7 41
Manufacturing cost ( in lakh) 6 33
Mileage ( in km/litre ) 22 15
Top speed (in km/hr ) 140 210

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.99788065450456
R Square 0.995765800634449
Adjusted R Square 0.995356039405525
Standard Error 2.30779153196702
Observations 35

ANOVA
df SS
Regression 3 38827.6180187373
Residual 31 165.102954405579
Total 34 38992.7209731429

Coefficients Standard Error

Intercept 50.7231271792463 5.29210288470814

Price
(in lakh rupees) -0.795026440875324 0.254333076043226
Mileage
(Km/ltr) 8.30633109237939 0.100181306818659
Top speed (Km/hr) -0.018572563992949 0.0305582354491913

Observations
The R-square and the adjusted R Square valures are very high which shows that the fi
For the p-value less than 0.05 the variables will be significant and impactful else there
variables having an impact on the Sales.
Sales = Inercept + b1*Price + b2*

Sales = 50.7231271792463 -0.795026440875324

Hypothesis Testing
 The Overall Test The null Hypothesis H0 would be: None of the independent va
on the dependent varibales.
The Alternate Hypothese Ha is: At least one independent varia
influence
The p-values of the on thevariables
independent dependent likevariable.
price and milage are less than 0.

The null Hypothesis H0 would be: The independent variable( X

The individual the dependent variable.
Significance Test The Alternate Hypothesis Ha would be that : The independent
dependent variab

Intercept

Price
(in lakh rupees)
Mileage
(Km/ltr)
Top speed (Km/hr)
On comparing each of the p-values for the independent variables individually with the

Calculations
Equation : Sales = 50.7231271792463 -0.795026440875324

Profit =Sales
Price( -inManufacturing
1000 units ) cost
( in Lakhs)
Overall Projected Profit = sales * profit (in crores)
( in crores )

Suppose increasing the price of Rocinante36 and Marengo32 by ₹1 lakh each. Then t

Sales ( in 1000
[ sales units
* profit ] )
New Overall Projected Profit = salescost
Profit = Price - Manufacturing * profit
( in crores )

Droping the insignificant regression variables ( Top speed ) and rebuilding the regression mode

SUMMARY OUTPUT ( After Dropping insignificant Variables )

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

ANOVA
df SS
Regression 2 38825.6506746148
Residual 32 167.070298528013
Total 34 38992.7209731429

Coefficients Standard Error

Intercept 47.7799640191966 2.11344142050695
Price
(in lakh rupees) -0.782925327667118 0.251041783157933
Mileage
(Km/ltr) 8.29446649742739 0.0972879310727833

OBSERVATIONS :
adjusted R-squared value for old regression model
adjusted R-squared value for new regression model

There is a slight increase by 0.0001 in the Adjusted R square va

the dropping of the insignificant variables.
 MS F Significance F
12942.5393395791 2430.1122955156 7.4472712258E-37
5.32590175501867

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

9.58468274035523 8.739023874E-11 39.929812186171 61.516442172322 39.929812186

-3.12592625876236 0.003833462977 -1.3137421693288 -0.276310712422 -1.313742169

82.9129840301932 5.7835637568E-38 8.1020099700452 8.5106522147136 8.10200997

-0.607776061671793 0.5477630261238 -0.0808964960897 0.0437513681038 -0.080896496

e valures are very high which shows that the fitness of the regression line is really good with the model.
bles will be significant and impactful else there wont be any impact, considering that the Intercept, Price and Milage are the only
.
Sales = Inercept + b1*Price + b2*Mileage + b3*Top speed

es = 50.7231271792463 -0.795026440875324* Price + 8.30633109237939 *Mileage

esis H0 would be: None of the independent variables has any significant influence
nt varibales.
ypothese Ha is: At least one independent variable has a significant
dependent
variables likevariable.
price and milage are less than 0.05 which means that we can reject the Null hypothesis at 95% confidence level.

esis H0 would be: The independent variable( X1, X2, X3 ) doesn’t have a significant influence on
ariable.
ypothesis Ha would be that : The independent variable ( X1, X2, X3 ) has a significant influence on the
b

P-value Null Hypothesis Significane of the Varibale

8.73902387404114E-11 Rejected Significant

0.00383346297701067 Rejected Significant

5.78356375681691E-38 Rejected Significant

0.547763026123756 Fail to Reject Not Significant
he independent variables individually with the critical value ( 0.05 ) it can be said that the intercept, Price and Milage are significant.

es = 50.7231271792463 -0.795026440875324* Price + 8.30633109237939 *Mileage

227.897226125466 ( using the price as 7 and mileage as 22 )

1
2278.97226125466

te36 and Marengo32 by ₹1 lakh each. Then the below changes can be observed.

227.897226125466
2
4557.94452250931

op speed ) and rebuilding the regression model using only significant variables.
 MS F Significance F
19412.8253373074 3718.2576212951 1.2901829731E-38
5.2209468290004

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

22.6076595052896 3.0381260506E-21 43.475024720316 52.084903318077 43.47502472

-3.1187052522431 0.0038273451847 -1.2942807063832 -0.271569948951 -1.294280706

85.2568906128974 2.6025697056E-39 8.096297466709 8.4926355281458 8.0962974667

quared value for old regression model 0.9953560394055

uared value for new regression model 0.9954475556525

ncrease by 0.0001 in the Adjusted R square value in the new regression model this can be due to
the insignificant variables.
 Upper 95.0%
61.5164421723

-0.27631071242

8.51065221471
0.0437513681

e and Milage are the only

95% confidence level.

e and Milage are significant.

 Upper 95.0%
52.0849033181

-0.27156994895

8.49263552815
 Top
Sales Price Mileage
Cars speed
(in 1,000 units) (in lakh rupees) (Km/ltr)
(Km/hr)
Marengo 1 20.896 42.5 9.3 199.4
Marengo 2 31.048 36 9.7 235.2
Marengo 3 29.904 54.7 16.6 240.8
Marengo 4 28.792 42.7 11.7 232.5
Marengo 5 16.776 44.9 13.7 188.8
Marengo 6 18.928 35.5 9.6 184.2
Marengo 7 22.776 51.3 13.7 207.7
Marengo 8 36.824 30.4 12.6 249.5
Marengo 9 22.216 38.4 16.2 175.8
Marengo 10 35.456 32.2 9.6 245.6
Marengo 11 28.576 59.4 11.3 223.3
Marengo 12 33.648 50.8 13.6 240
Marengo 13 33.44 57.5 13.5 250
Marengo 14 34.912 44.6 11.1 247.4
Marengo 15 24.016 34.6 14.1 192
Marengo 16 20.992 56.4 13.4 201.2
Marengo 17 21.696 41.4 12.8 193.3
Marengo 18 17.832 53.7 16 202
Marengo 19 25.624 44.8 12.7 208.9
Marengo 20 21.92 32.4 13.6 176.9
Marengo 21 24.792 40.9 11.6 218.2
Marengo 22 22.256 44.1 11.4 190
Marengo 23 15.488 46.6 16.3 176.8

Marengo 24 21.64 31.4 14.5 178.9

Marengo 25 23.264 54.7 14.3 192.3

Marengo 26 19.328 37.9 9.4 184.1
Marengo 27 27.216 52.9 15.3 240.3
Marengo 28 23.096 42.7 15 192.1
Marengo 29 17.824 54.9 13.5 199
Marengo 30 19.144 44 11.8 181.1
Marengo 31 21.6 42.2 9.3 181.2
Specifications Rocinante36 Marengo32
Price ( in lakh ) 7 41
Manufacturing cost ( in lakh) 6 33
Mileage ( in km/litre ) 22 15
Top speed (in km/hr ) 140 210

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.929025133175836
R Square 0.863087698072379
Adjusted R Square 0.847875220080421
Standard Error 2.30673039512172
Observations 31

ANOVA
df SS MS
Regression 3 905.669817744951 301.88993925
Residual 27 143.667138126017 5.3210051158
Total 30 1049.33695587097

Coefficients Standard Error t Stat

Intercept -13.4476488883451 4.45379402893311 -3.019369284

Price
(in lakh rupees) -0.186728172116573 0.0554383632621942 -3.368212211
Mileage
(Km/ltr) 0.0413011869886482 0.206640301103274 0.1998699516
Top speed (Km/hr) 0.22080168203862 0.017223150084434 12.820052137

findings p value less than 0.05 intercept

price
top speed

sales
sales =intercept + b1*Price +b2*mileage+b3* top speed
sales = -13.4476488883451 + -0.186728172*price+0.220801682*top speed
25.2648492829856

The null Hypothesis H0 would be: The independent variable( X1, X2, X3 ) doesn’t have a signifi
the dependent variable.
P-value Null Hypothesis
Intercept 0.00547896316725025 Rejected
 Price
(in lakh rupees) 0.00228837673380119 Rejected
Top speed (Km/hr) 5.38827494361743E-13 Rejected
Mileage
(Km/ltr) 0.843080033902266 Fail to Reject
On comparing each of the p-values for the independent variables individually with the critical value ( 0.05 ) it can be said that

Calculations
Equation : Sales = -13.4476488883451 -0.186728172116573* Price + 0.2208

Sales (=inPrice
Profit 1000- Manufacturing
units ) cost 25.264849283
(Overall
in Lakhs)
Projected Profit = sales * profit in crores 8
( in crores ) 2021.1879426

Suppose increasing the price of Rocinante36 and Marengo32 by ₹1 lakh each. Then the below

Sales
Profit (=inPrice
1000- Manufacturing
units ) cost 25.264849283
(New
in Lakhs)
Overall Projected Profit = sales * profit 9
( in crores ) 2273.8364355

Droping the insignificant regression variables ( Mileage ) and rebuilding the regression model using only signifi

SUMMARY OUTPUT ( After Dropping insignificant Variables )

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
Regression 2 905.45725424552 452.72862712
Residual 28 143.879701625447 5.1385607723
Total 30 1049.33695587097

Coefficients Standard Error t Stat

Intercept -12.97013136159 3.69375976376271 -3.511362999
Price
(in lakh rupees) -0.182473820184809 0.050303979958483 -3.627423125
Top speed (Km/hr) 0.220139890440022 0.0166095874144 13.253784393
 F Significance F
56.7355100548808 8.744882E-12

P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

0.00547896316725 -22.58607939 -4.3092183857 -22.58607939 -4.309218386

0.002288376733801 -0.300478298 -0.0729780466 -0.300478298 -0.072978047

0.843080033902266 -0.382689689 0.4652920627 -0.382689689 0.4652920627

5.388274943617E-13 0.1854626971 0.256140667 0.1854626971 0.256140667

b3* top speed

682*top speed

( X1, X2, X3 ) doesn’t have a significant influence on

Significane of the Varibale

Significant
 Significant
Significant

Not Significant
al value ( 0.05 ) it can be said that the intercept, Price and Top Speed are significant.

186728172116573* Price + 0.22080168203862 *Top Speed

( using the price as 41 and mileage as 15 )

2 by ₹1 lakh each. Then the below changes can be observed.

lack to cr /100

regression model using only significant variables.

F Significance F
88.1041690817304 8.302021E-13

P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

0.001530548919635 -20.53645524 -5.4038074814 -20.53645524 -5.403807481

0.001130002935003 -0.285516852 -0.0794307884 -0.285516852 -0.079430788

1.37964990241E-13 0.186116693 0.2541630879 0.186116693 0.2541630879