Predicting Used Car Prices in Detroit

This report is to analyze the information of used automobile sound injurys in Detroit using twofold reasoning backward analysis. The soothsayer versatiles identified ar manufacturing business (GM, Ford or DC), Year, climb on and machine lineament ( railcar, Truck, SUV, caravan or other). The response variable quantity is Price and we ar handout to analyze how well the supra mentioned predictors help in identifying the play in terms. A tetchy run of descriptive statistics with recession plots and normal curve plots suggests that price and jump on domiciliate be let down windn as normally distributed, with some outliers, as shown at a lower place: To start with the regression analysis, we branch checked the predictor variables to search if thither argon any related variables, so as to avoid the problem of multicolinearity. We nominate that age and form are related with a coefficient of -1. Hence, we chose to call for year from the model, and take age as the predictor variable for further analysis. The former(a) variables, Manufacturer and Car Type are binary program coded (shown below) they are categorical.

ManufacturerCar Type Reference=GMReference= a nonher(prenominal) Car Type Example regulation:Example Code: pretenceMgrDCFordModelCar TypeCarTruckSUVVan Astro LS V6GM00Astro LS V6Van0001 cirrus LXi V6DC10Cirrus LXi V6Car1000 With the coded manufacturer, car type and age as predictors and price as the response, we ran the seven-fold regression analysis on the data and observed the by-line results: R² = 0.143 Adjusted R² = 0.133 R = 0.377 Std. Error = 8577.171 reverting p-value from ANOVA table = 4.32E-18 p-value for climb on variable = 6.76E-09 1) R2 is very low, and thither is a gap mingled with R2 and Radj, which tells us that this model is not a very faithful fit, and that there might be more predictors than necessary in the model. 2) The regression p-value is quite small, which shows that the predictors are real enough for explaining the response. The around significant predictor seems to be age variable, with a...If you want to get a full essay, rule it on our website: Ordercustompaper.com

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