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
 Regression Analysis
The dependent Variable is Sales (in 1000 Units ) where as the independent variables are
Regression Equation : Sales = Constant + b1*Price

Assumptions : The relationship between depndent variable and of those of the predictor va
Confidence Level = 95% ( Significance Le

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 MS
Regression 3 38827.6180187373 12942.5393395791
Residual 31 165.102954405579 5.32590175501867
Total 34 38992.7209731429

Coefficients Standard Error t Stat

Intercept 50.7231271792463 5.29210288470814 9.58468274035523
Price
(in lakh rupees) -0.795026440875324 0.254333076043226 -3.12592625876236
Mileage
(Km/ltr) 8.30633109237939 0.100181306818659 82.9129840301932
Top speed (Km/hr) -0.0185725639929489 0.0305582354491913 -0.607776061671793

Observations
The R-square and the adjusted R Square valures are very high which shows that the fitness of the reg
For the p-value less than 0.05 the variables will be significant and impactful else there wont be any im
an impact on the Sales.

Sales = Inercept + b1*Price + b2*Mileag

Sales = 50.7231271792463 -0.795026440875324* Price

Hypothesis Testing
 The Overall Test The null Hypothesis H0 would be: None of the independent v
on the dependent varibales.
The Alternate Hypothese Ha is: At least one independent vari
influence
The p-values of the independent on thelike
variables dependent
price andvariable.
milage are less than 0.05 which

The null Hypothesis H0 would be: The independent variable(

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

P-value
Intercept 8.7390238740411E-11
Price
(in lakh rupees) 0.0038334629770107
Mileage
(Km/ltr) 5.7835637568169E-38
Top speed (Km/hr) 0.547763026123756
On comparing each of the p-values for the independent variables individually with the critical v

Calculations
Equation : Sales = 50.7231271792463 -0.795026440875324* Price

Sales ( in 1000 units ) 227.897226125466

Profit = Price - Manufacturing cost
( in Lakhs) 1

Overall Projected Profit = sales * profit

( in crores ) 2278.97226125466

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

Profit =Sales
Price( -inManufacturing
1000 units ) cost 227.897226125466
( in Lakhs)
[ sales * profit ]
Profit = Price - Manufacturing cost 2
New Overall Projected Profit = sales * profit
( in crores ) 4557.94452250931

Droping the insignificant regression variables ( Top speed ) and rebuilding the regression model using onl

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 MS
Regression 2 38825.6506746148 19412.8253373074
Residual 32 167.070298528013 5.2209468290004
Total 34 38992.7209731429

Coefficients Standard Error t Stat

Intercept 47.7799640191966 2.11344142050695 22.6076595052896
Price
(in lakh rupees) -0.782925327667118 0.251041783157933 -3.1187052522431
Mileage
(Km/ltr) 8.29446649742739 0.0972879310727833 85.2568906128974

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 v

can be due to the dropping of the insignificant variables.
 Regression Analysis
ndependent variables are Price(in lakh rupees) , Mileage (Km/ltr), Top speed (Km/hr)
onstant + b1*Price + b2*Mileage + b3*Top speed

f those of the predictor vaariables is linear. Observations are independent of each other.
vel = 95% ( Significance Level is 0.05 )

F Significance F
2430.11229552 7.4472712258E-37 => The value is less than 0.05, hence it is significant and the regression is possib

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

8.7390239E-11 39.9298121861708 61.516442172 39.929812186 61.5164421723217

0.00383346298 -1.3137421693288 -0.2763107124 -1.3137421693 -0.276310712421805

5.7835638E-38 8.10200997004517 8.5106522147 8.10200997 8.51065221471361

0.54776302612 -0.0808964960897 0.0437513681 -0.0808964961 0.0437513681038242

that the fitness of the regression line is really good with the model.
else there wont be any impact, considering that the Intercept, Price and Milage are the only variables having

t + b1*Price + b2*Mileage + b3*Top speed

.795026440875324* Price + 8.30633109237939 *Mileage

one of the independent variables has any significant influence

ast one independent variable has a significant

e.
e are less than 0.05 which means that we can reject the Null hypothesis at 95% confidence level.

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

be that : The independent variable ( X1, X2, X3 ) has a significant influence on the

Null Hypothesis Significane of the Varibale

Rejected Significant

Rejected Significant

Rejected Significant
Fail to Reject Not Significant
vidually with the critical value ( 0.05 ) it can be said that the intercept, Price and Milage are significant.

.795026440875324* Price + 8.30633109237939 *Mileage

( using the price as 7 and mileage as 22 )

ach. Then the below changes can be observed.

egression model using only significant variables.

 F Significance F
3718.2576213 1.2901829731E-38

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

3.0381261E-21 43.4750247203163 52.084903318 43.47502472 52.0849033180769

0.00382734518 -1.2942807063832 -0.271569949 -1.2942807064 -0.271569948951044

2.6025697E-39 8.09629746670899 8.4926355281 8.0962974667 8.49263552814579

0.99535603941
0.99544755565

n the Adjusted R square value in the new regression model this

significant variables.
d the regression is possible
 Sales Price Top speed Mileage
Cars
(in 1,000 units) (in lakh rupees) (Km/hr) (Km/ltr)

Marengo 1 20.896 42.5 199.4 9.3

Marengo 2 31.048 36 235.2 9.7
Marengo 3 29.904 54.7 240.8 16.6
Marengo 4 28.792 42.7 232.5 11.7
Marengo 5 16.776 44.9 188.8 13.7
Marengo 6 18.928 35.5 184.2 9.6
Marengo 7 22.776 51.3 207.7 13.7
Marengo 8 36.824 30.4 249.5 12.6
Marengo 9 22.216 38.4 175.8 16.2
Marengo 10 35.456 32.2 245.6 9.6
Marengo 11 28.576 59.4 223.3 11.3
Marengo 12 33.648 50.8 240 13.6
Marengo 13 33.44 57.5 250 13.5
Marengo 14 34.912 44.6 247.4 11.1
Marengo 15 24.016 34.6 192 14.1
Marengo 16 20.992 56.4 201.2 13.4
Marengo 17 21.696 41.4 193.3 12.8
Marengo 18 17.832 53.7 202 16
Marengo 19 25.624 44.8 208.9 12.7
Marengo 20 21.92 32.4 176.9 13.6
Marengo 21 24.792 40.9 218.2 11.6
Marengo 22 22.256 44.1 190 11.4
Marengo 23 15.488 46.6 176.8 16.3
Marengo 24 21.64 31.4 178.9 14.5
Marengo 25 23.264 54.7 192.3 14.3
Marengo 26 19.328 37.9 184.1 9.4
Marengo 27 27.216 52.9 240.3 15.3
Marengo 28 23.096 42.7 192.1 15

Marengo 29 17.824 54.9 199 13.5

Marengo 30 19.144 44 181.1 11.8

Marengo 31 21.6 42.2 181.2 9.3

Regression Analysis
The dependent Variable is Sales (in 1000 Units ) where as the independent variables are Price(in lakh rupees) , Mileage (Km
Regression Equation : Sales = Constant + b1*Price + b2*Mileage + b3*Top speed

Assumptions : The relationship between depndent variable and of those of the predictor vaariables is linear. Observation
Confidence Level = 95% ( Significance Level is 0.05 )

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
Regression 3 905.669817744951
Residual 27 143.667138126017
Total 30 1049.33695587097

Coefficients Standard Error

Intercept -13.4476488883451 4.45379402893311
Price
(in lakh rupees) -0.186728172116573 0.05543836326219
Top speed (Km/hr) 0.22080168203862 0.01722315008443
Mileage
(Km/ltr) 0.0413011869886482 0.20664030110327

Observations
The R-square and the adjusted R Square valures are high which sh
For the p-value less than 0.05 the variables will be significant and
an impact on the Sales.

Sales = I

Sales = -13.44764888834
Hypothesis Testing

The Overall Test The null Hypothesis H0 would be: No

on the dependent varibales.
The Alternate Hypothese Ha is: At lea
The p-values ofinfluence on the dependent
the independent variable.
variables like price

The null Hypothesis H0 would be: Th

the dependent variable.
The individual Significance The Alternate Hypothesis Ha would b
Test dependent variab

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

Calculations
Equation :

Sales ( in 1000 units )

Profit = Price - Manufacturing cost
( in Lakhs)
Overall Projected Profit = sales * profi
( in crores )

Suppose increasing the price of Roci

Sales ( in 1000 units )

Profit = Price - Manufacturing cost
( in Lakhs)

New Overall Projected Profit = sales *

( in crores )

Droping the insignificant regression variables ( M

SUMMARY OUTPUT ( After Dropping insignificant Variables )

Regression Statistics
Multiple R 0.92891610424611
R Square 0.86288512872776
Adjusted R Square 0.85309120935118
Standard Error 2.26683937947473
Observations 31

ANOVA
df
Regression 2
Residual 28
Total 30

Coefficients
Intercept -12.97013136159
Price
(in lakh rupees) -0.1824738201848
Top speed (Km/hr) 0.22013989044002

OBSERVATIONS :
(in lakh rupees) , Mileage (Km/ltr), Top speed (Km/hr)
b3*Top speed

riables is linear. Observations are independent of each other.

MS F Significance F
301.889939248317 56.735510054881 8.7448816E-12 => The value is less than 0.05, hence it is significant and th
5.32100511577839

t Stat P-value Lower 95% Upper 95%

-3.01936928402737 0.0054789631673 -22.586079391 -4.3092183856625

-3.36821221134266 0.0022883767338 -0.3004782976 -0.0729780465914833

12.820052136582 5.3882749436E-13 0.1854626971 0.256140666971782

0.199869951641267 0.8430800339023 -0.3826896887 0.465292062727021

are valures are high which shows that the fitness of the regression line is really good with the model.
iables will be significant and impactful else there wont be any impact, considering that the Intercept, Price and Top Speed are the only

Sales = Inercept + b1*Price + b2*Mileage + b3*Top speed

Sales = -13.4476488883451 -0.186728172116573* Price + 0.22080168203862 *Top Speed

 Hypothesis H0 would be: None of the independent variables has any significant influence
ependent varibales.
rnate Hypothese Ha is: At least one independent variable has a significant
eependent
on the dependent variable.
variables like price and topspeed are less than 0.05 which means that we can reject the Null hypothesis at 95% confidence le

Hypothesis H0 would be: The independent variable( X1, X2, X3 ) doesn’t have a significant influence on
endent variable.
rnate Hypothesis Ha would be that : The independent variable ( X1, X2, X3 ) has a significant influence on the
ent variab

P-value Null Hypothesis Significane of the Varibale

0.00547896316725025 Rejected Significant

0.00228837673380119 Rejected Significant

5.38827494361743E-13 Rejected Significant

0.843080033902266 Fail to Reject Not Significant

alues for the independent variables individually with the critical value ( 0.05 ) it can be said that the intercept, Price and Top Speed are s

Sales = -13.4476488883451 -0.186728172116573* Price + 0.22080168203862 *Top Speed

n 1000 units ) 25.264849282986 ( using the price as 7 and mileage as 22 )

Price - Manufacturing cost
s) 8
Projected Profit = sales * profit
es ) 2021.1879426388

e increasing the price of Rocinante36 and Marengo32 by ₹1 lakh each. Then the below changes can be observed.

n 1000 units ) 25.264849282986

Price - Manufacturing cost
s) 9

erall Projected Profit = sales * profit

es ) 2273.8364354687

ficant regression variables ( Mileage ) and rebuilding the regression model using only significant variables.

insignificant Variables )
 SS MS F Significance F
905.45725424552 452.72862712276 88.104169082 8.30202130911125E-13
143.879701625447 5.1385607723374
1049.33695587097

Standard Error t Stat P-value Lower 95%

3.69375976376271 -3.511362998978 0.0015305489 -20.5364552417575

0.050303979958483 -3.627423125077 0.0011300029 -0.285516851992491

0.0166095874144 13.253784392571 1.3796499E-13 0.186116692958093

adjusted R-squared value for old regression model 0.8478752201

adjusted R-squared value for new regression model0.8530912094

There is a increase by 0.01 in the Adjusted R square value in the new regression model this can be due to the
dropping of the insignificant variables.
han 0.05, hence it is significant and the regression is possible

Lower 95.0% Upper 95.0%

-22.586079391 -4.3092183856625

-0.3004782976 -0.0729780465914833
0.1854626971 0.256140666971782

-0.3826896887 0.465292062727021

del.
ept, Price and Top Speed are the only variables having
 Null hypothesis at 95% confidence level.

nce on

ence on the

e intercept, Price and Top Speed are significant.

862 *Top Speed

can be observed.

variables.
 Upper 95% Lower 95.0% Upper 95.0%
-5.4038074814 -20.5364552417575 -5.403807

-0.0794307884 -0.285516851992491 -0.079431

0.2541630879 0.186116692958093 0.254163

el this can be due to the