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Ford Mustang Statistical Report

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Submitted By gabbimorales
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Ford Mustang Statistical Report

To: Tom Jones, Director of Sales
From: Statistician
Date: 10/17/2010
Subject: Analysis of factors affecting selling price of Ford Mustangs

Per your request, I am providing a statistical analysis of the factors affecting the selling price of Ford Mustangs. There are nine (9) variables that affect the selling price of Ford Mustangs. They are: Convertible or not Convertible, automatic or manual transmission, air conditioning or no air conditioning, GT model or non-GT, private or dealer owned, color, age of the car, mileage, and number of cylinders for engine.

Data:

The sales manager has provided me with the records of a randomly selected sample of 35 Ford Mustangs containing the variables listed above.

I will provide you with analysis on each of the independent variables listed above in order. My analysis will include a null and alternate hypothesis. The hypothesis will be based on a 0.05 significance level. A 0.05 significance level means that I will be 95% certain of the results. I will start by evaluating the variables independently followed by the most significant variables (collectively) that affect the selling price of Ford Mustangs. Finally, I will present a conclusion based on my analysis that will accurately provide the variables that should be considered when establishing the selling price of Ford Mustangs.

To determine the effect of a Ford Mustang’s selling price based on whether or not it is a convertible, I have created the following null and Alternate Hypothesis:

Null Hypothesis: A convertible has no effect on selling price.
Alternate Hypothesis: A convertible has an effect on selling price.

To perform the hypothesis test, I used CONVERT as the independent variable and selling price as the dependant variable. MegaStat was used to construct the following data output.

Regression Analysis

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