Analysing the Impact of Car

Features on Price and

Profitability
• PROJECT DESCRIPTION:

• This project focuses on conducting exploratory analysis of a car dataset to uncover insights and answer important business questions in the automotive industry. The
dataset comprises a wide range of information, including car make, model, year, engine specifications, transmission type, fuel efficiency, pricing, and more. The
primary objective is to gain a deeper understanding of various factors that influence car pricing and fuel efficiency. By analyzing the dataset, we aim to identify
patterns, trends, and correlations among different car features and their impact on pricing and fuel efficiency.

• We also investigate the distribution of car prices across different brands and body styles to understand how pricing varies within these categories. Furthermore, we
explore the relationship between transmission type and body style with the car's suggested retail price (MSRP) to examine their impact on pricing. Another area of
focus is analyzing how fuel efficiency varies across different body styles and model years. This allows us to observe trends and changes in fuel efficiency over time
and across different car types. Additionally, we examine the relationship between car brands and the car's horsepower, MPG, and price. By visualizing this
information in a bubble chart, we can identify variations and compare different brands based on these attributes.

• Throughout the project, thorough data cleaning and preprocessing steps were undertaken to ensure data integrity. Missing values were handled, duplicates were
removed, and data formats were standardized to facilitate accurate analysis. The project makes certain assumptions, such as assuming the dataset represents a
diverse sample of cars in the market and assuming the accuracy of the provided data. These assumptions enable us to derive meaningful insights and
recommendations from the analysis.

• Overall, this project aims to provide valuable insights and actionable information to stakeholders in the automotive industry, enabling them to make informed
decisions related to pricing strategies, feature enhancements, and fuel efficiency improvements.
• Approach:

• Our project utilized descriptive statistics,

visualization techniques, and modeling to
analyze the car dataset and address the
business questions.

• We employed descriptive statistics to

summarize the data and gain insights into
various car attributes.

• Visualization techniques such as pivot tables,

charts, and plots were used to represent the
data visually and identify patterns and trends.

• Regression analysis was performed to identify

the key variables affecting car prices.
 Microsoft Excel was the primary
software employed for this
The decision to utilize Excel was
project, providing a powerful
driven by its widespread
and comprehensive toolset for
adoption and familiarity in the
data analysis and visualization.
Tech-Stack Used: business and analytics domains,
With its wide range of features,
making it an accessible choice
such as pivot tables, charts, and
for users with varying levels of
formulas, Excel facilitated the
expertise.
manipulation and examination of
the car dataset.
INSIGHTS and
RESULTS
:
TASK 1: How does the popularity of a car model vary
across different market categories?

• For this task, Market categories were

Consolidated. By grouping similar market
categories together, we simplify the chart.
For example, grouping of "Crossover,
Diesel" and "Crossover, Flex Fuel" under a
broader category called "Crossover - Fuel
Type" or "Crossover - Diesel/Flex Fuel."
Similarly, you can consolidate other market
categories based on similarities.
• Crossover-Fuel type has the most Car
Models and is very popular.

• ‘Factory Tuner, Performance’ and ‘Exotic-

Performance’ are the Market Categories which
needs Improvement.
TASK 2: What is the relationship between a car's engine
power and its price?

• By visualizing the data points on the scatter chart,

we can observe the overall pattern or trend between
engine power and price.
• The trendline is providing the insight that there is a
positive correlation between engine power and price
and the degree to which they are related.
• The equation y = 365.29x - 50551 suggests a
positive linear relationship between engine
horsepower (x) and car price (y). The R² value of
0.4383 indicates that approximately 43.83% of the
variability in price can be explained by engine
horsepower.
• The correlation coefficient of 0.66 suggests a
moderate positive relationship between engine
horsepower and car price. As engine horsepower
increases, there is a tendency for the car price to
increase as well.
TASK 3: Which car features are most important in
determining a car's price?

• Regression analysis allows us to analyze the

relationship between the dependent variable (car
price) and multiple independent variables (car
features). By analyzing the coefficient values
obtained from the regression analysis, we can
assess the impact of each variable on the car's
price.
• For Vehicle Style and Transmission Type, Rank
System is used, The more the importance, lesser is
the Rank.
• Regression analysis was conducted to determine
the car features that have the strongest influence on
the price. The analysis revealed that variables such
as Engine HP and Engine Cylinders positively
impact the price, while variables like Number of
Doors, highway MPG, city mpg, Transmission
Type, and Vehicle Size have a negative impact.
TASK 4: How does the average price of a car vary across
different manufacturers?

• In Task 4.A, a pivot table was created to calculate the

average price of cars for each manufacturer. The pivot table
aggregates the data and summarizes the average price based
on the manufacturer. This provides a comprehensive
overview of the average price range associated with each
manufacturer.

• In Task 4.B, a bar chart or a horizontal stacked bar chart

was generated to visually represent the relationship between
the manufacturer and the average price. The bar chart
allows for easy comparison between different
manufacturers, showcasing the variations in average prices
across the industry

• The results revealed a wide range of average prices, with

luxury brands like Aston Martin and Bugatti commanding
higher prices compared to mainstream brands like Honda
and Toyota. Visualizing the relationship between
manufacturer and average price through a bar chart
provided a clear representation of the price distribution.
TASK 5: What is the relationship between fuel efficiency and the
number of cylinders in a car's engine?

• In Task 5.A, a scatter plot was created with the number

of cylinders on the x-axis and highway MPG on the y-
axis. there is a negative relationship between the
number of cylinders in a car's engine and its fuel
efficiency, as represented by highway MPG. As the
number of cylinders decreases, the car tends to have
lower fuel efficiency. This insight can be valuable for
car manufacturers, buyers, and policymakers in
understanding the impact of engine configuration on
fuel consumption and making informed decisions
related to vehicle efficiency and environmental
considerations.
• In Task 5.B,the correlation coefficient was calculated to
quantify the strength and direction of the relationship
between the number of cylinders and highway MPG.
The correlation coefficient measures the degree of
linear association between two variables. In this case,
the correlation coefficient was found to be -0.62. The
negative value indicates an inverse relationship.
TASK 6: Building the
Dashboard:
Attachment link

You can find the Link to my Excel File

HERE