Mileage Top

Sales Price
Cars (Km/ speed
(in 1,000 units) (in lakh rupees)
ltr) (Km/hr)
Specifications
Rocinante 1 171.877 6.1 15.8 168.2 Price
Rocinante 2 139.796 6.1 12.1 149.6 Manufacturing cost
Rocinante 3 178.947 9.9 17 173.4 Mileage lm/ltr
Rocinante 4 140.022 5.8 11.6 170.6 Top speed km/hr
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 Regression Analysis
Rocinante 10 149.933 8.8 13.3 175.4 It has been noted that the dependent V
The multiple Regression Equation ->
Rocinante 11 171.579 9.5 15.8 150.9
Rocinante 12 201.512 9.2 19.2 140.5 Confidence Level = 95% ( Significan
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 SUMMARY OUTPUT
Rocinante 19 107.331 7.2 7.5 164.7
Rocinante 20 190.345 8.4 18.1 182.7 Regression Statistics
Rocinante 21 108.419 8.4 7.9 165.7 Multiple R
Rocinante 22 150.249 5.7 12.6 137 R Square
Rocinante 23 155.882 5.5 12.9 173.9 Adjusted R Square
Rocinante 24 100.98 8.4 7.6 165.1 Standard Error
Rocinante 25 182.679 5.6 16.7 160.1 Observations
Rocinante 26 166.752 9.9 15.5 155.6
Rocinante 27 121.561 6.2 9.5 155.4 ANOVA
Rocinante 28 174.256 9.9 16.3 161.9
Rocinante 29 119.018 6.5 9.1 146.8 Regression
Rocinante 30 169.842 7.1 15.3 149.5 Residual
Rocinante 31 198.311 9.6 19.1 146.5 Total
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 Intercept
Price
Rocinante 35 118.561 6.1 9.4 165.4 (in lakh rupees)
Mileage
(Km/ltr)
Top speed (Km/hr)

Observations
Hypothesis Testing

Calculations

Droping the insignificant regr

SUMMARY OUTPUT ( After Dropp

 Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations

ANOVA

Regression
Residual
Total

Intercept
Price
(in lakh rupees)
Mileage
(Km/ltr)
 Rocinante36 Marengo32
₹ 700,000 ₹ 4,100,000
₹ 600,000 ₹ 3,300,000
22 15
140 210

n Analysis
n noted that the dependent Variable here is Sales (in 1000 Units ) where as the independent variables are Price(in lakh rupees), Mileage (Km
ple Regression Equation -> Sales = Constant + b1*Price + b2*Mileage + b3*Top speed

e Level = 95% ( Significance Level is 0.05 )

RY OUTPUT

egression Statistics
0.9978806545
0.9957658006
0.9953560394
2.307791532
35

df SS MS F Significance F
3 38827.6180187373 12942.53934 2430.1122955 7.447271E-37
31 165.102954405579 5.325901755
34 38992.7209731429

Coefficients Standard Error t Stat P-value Lower 95%

50.723127179 5.29210288470814 9.5846827404 8.739024E-11 39.929812186

-0.7950264409 0.254333076043226 -3.1259262588 0.003833463 -1.3137421693

8.3063310924 0.100181306818659 82.91298403 5.783564E-38 8.10200997

-0.018572564 0.0305582354491913 -0.6077760617 0.5477630261 -0.0808964961

The R-square and the adjusted R Square valures are very high which shows that the fitness of the regression line is really good
For the p-value less than 0.05 the variables will be significant and impactful else there wont be any impact, considering that the
Milage are the only variables having an impact on the Sales.
 Sales = Inercept + b1*Price + b2*Mileage + b3*Top speed

Sales = 50.7231271792463 -0.795026440875324* Price + 8.30633109237939 *Mileage

The Overall
Test The null Hypothesis H0 would be: None of the independent variables has any significant influence
on the dependent varibales.
The Alternate Hypothese Ha is: At least one independent variable has a significant
influence on the dependent variable. level.

The null Hypothesis H0 would be: The independent variable( X1, X2, X3 ) doesn’t have a significant influence
the dependent variable.
The individual The Alternate Hypothesis Ha would be that : The independent variable ( X1, X2, X3 ) has a significant influenc
Significance dependent variab
Test

P-value Null HypothesiSignificane of the Varibale

Intercept 8.739024E-11 Rejected Significant
Price
(in lakh rupees) 0.003833463 Rejected Significant
Mileage
(Km/ltr) 5.783564E-38 Rejected Significant
Top speed (Km/hr) 0.5477630261 Fail to Reject Not Significant
On comparing each of the p-values for the independent variables individually with the critical value ( 0.05 ) it can be said that the interce

Equation : Sales = 50.7231271792463 -0.795026440875324* Price + 8.30633109237939 *Mileage

Sales
Profit = Price ( in 1000 unitscost
- Manufacturing ) (in Lakhs) ₹ 227.90 ( using the price as 7 and mileage as 22 )
( in Lakhs)
Overall Projected Profit = sales * profit ₹ 1
( in crores ) ₹ 2,278.97

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

Sales ( in 1000
[ sales units
* profit ] ) ₹ 227.90
New Overall Projected Profit = salescost
Profit = Price - Manufacturing * profit ₹ 2
( in crores ) 4557.9445225

oping the insignificant regression variables ( Top speed ) and rebuilding the regression model using only significant variables.

RY OUTPUT ( After Dropping insignificant Variables )

egression Statistics
0.9978553735
0.9957153465
0.9954475557
2.2849391303
35

df SS MS F Significance F
2 38825.6506746148 19412.825337 3718.2576213 1.290183E-38
32 167.070298528013 5.220946829
34 38992.7209731429

Coefficients Standard Error t Stat P-value Lower 95%

47.779964019 2.11344142050695 22.607659505 3.038126E-21 43.47502472

-0.7829253277 0.251041783157933 -3.1187052522 0.0038273452 -1.2942807064

8.2944664974 0.0972879310727833 85.256890613 2.60257E-39 8.0962974667

OBSERVATIONS :
adjusted R-squared value for old regression model 0.9953560394
adjusted R-squared value for new regression model 0.9954475557

There is a slight increase by 0.0001 in the Adjusted R square value in the new regression model this can be
due to the dropping of the insignificant variables.
e(in lakh rupees), Mileage (Km/ltr), Top speed (Km/hr)

=> The value is less than 0.05, hence it is significant and the regression is possible

Upper 95% Lower 95.0% Upper 95.0%

61.516442172 39.929812186 61.516442172

-0.2763107124 -1.3137421693 -0.2763107124

8.5106522147 8.10200997 8.5106522147

0.0437513681 -0.0808964961 0.0437513681

e regression line is really good with the model.

ny impact, considering that the Intercept, Price and
peed

237939 *Mileage

gnificant influence

nt

n’t have a significant influence on

X3 ) has a significant influence on the

nificane of the Varibale

Significant
) it can be said that the intercept, Price and Milage are significant.

237939 *Mileage

s 7 and mileage as 22 )

gnificant variables.
 Upper 95% Lower 95.0% Upper 95.0%
52.084903318 43.47502472 52.084903318

-0.271569949 -1.2942807064 -0.271569949

8.4926355281 8.0962974667 8.4926355281

gression model this can be

 Mileage Top
Sales Price
Cars (Km/ speed
(in 1,000 units) (in lakh rupees)
ltr) (Km/hr)
Specifications
Marengo 1 20.896 42.5 9.3 199.4 Price
Marengo 2 31.048 36 9.7 235.2 Manufacturing cost
Marengo 3 29.904 54.7 16.6 240.8 Mileage lm/ltr
Marengo 4 28.792 42.7 11.7 232.5 Top speed km/hr
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 Regression Analysis
Marengo 10 35.456 32.2 9.6 245.6 It has been noted that the dependen
The multiple Regression Equation
Marengo 11 28.576 59.4 11.3 223.3
Marengo 12 33.648 50.8 13.6 240 Confidence Level = 95% ( Signific
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 SUMMARY OUTPUT
Marengo 19 25.624 44.8 12.7 208.9
Marengo 20 21.92 32.4 13.6 176.9 R
Marengo 21 24.792 40.9 11.6 218.2 Multiple R
Marengo 22 22.256 44.1 11.4 190 R Square
Marengo 23 15.488 46.6 16.3 176.8 Adjusted R Square
Marengo 24 21.64 31.4 14.5 178.9 Standard Error
Marengo 25 23.264 54.7 14.3 192.3 Observations
Marengo 26 19.328 37.9 9.4 184.1
Marengo 27 27.216 52.9 15.3 240.3 ANOVA
Marengo 28 23.096 42.7 15 192.1
Marengo 29 17.824 54.9 13.5 199 Regression
Marengo 30 19.144 44 11.8 181.1 Residual
Marengo 31 21.6 42.2 9.3 181.2 Total

Intercept
Price
(in lakh rupees)
Top speed (Km/hr)
Mileage
(Km/ltr)

Observations
Hypothesis Testing
 Rocinante36 Marengo32
₹ 700,000 ₹ 4,100,000
₹ 600,000 ₹ 3,300,000
22 15
140 210

on Analysis
n noted that the dependent Variable here is Sales (in 1000 Units ) where as the independent variables are Price(in lakh rupees), Mileage
ple Regression Equation -> Sales = Constant + b1*Price + b2*Mileage + b3*Top speed

ce Level = 95% ( Significance Level is 0.05 )

RY OUTPUT

Regression Statistics
0.929025133175836
0.863087698072379
0.847875220080421
2.30673039512172
31

df SS MS
3 905.669817744951 301.889939248
27 143.667138126017 5.32100511578
30 1049.33695587097

Coefficients Standard Error t Stat

-13.44765 4.45379 -3.01937

-0.18673 0.05544 -3.36821

0.22080 0.01722 12.82005

0.04130 0.20664 0.19987

The R-square and the adjusted R Square valures are high which shows that the fitness of the regression line is really good w
For the p-value less than 0.05 the variables will be significant and impactful else there wont be any impact, considering that
Sales.
Sales = Inercept + b1*Price +

Sales = -13.4476488883451 -0.186728172116

The Overall Test The Null Hypothesis
H0: None of the independent variables has any significant
The Alternate Hypothese
The p-values of the independent variablesHa:
likeAtprice
leastand
onetopspeed
independent variable
are less thanhas
0.05a significant
which means inf

The individual Significance Test The null Hypothesis H0 would be: The independent varia
the dependent variable.
The Alternate Hypothesis Ha would be that : The indepen
dependent variab
P-value
Intercept 0.0055
Price
(in lakh rupees) 0.0023
Top speed (Km/hr) 0.0000
Mileage
(Km/ltr) 0.8431
On comparing each of the p-values for the independent variables individually with the critical value ( 0.05

Calculations
Equation : Sales = -13.4476488883451

Sales (=inPrice
Profit 1000- units )
Manufacturing cost
(profit
in Lakhs)
( in crores )

Suppose increasing the price of Rocinante36 and Mareng

Sales (=inPrice
Profit 1000- units )
Manufacturing cost
(* in Lakhs)
profit
( in crores )

Droping the insignificant regression variables ( Mileage ) and rebuilding the regression m

SUMMARY OUTPUT ( After Dropping insignificant Variables )

Regression Statistics
Multiple R 0.92891610424611
R Square 0.86288512872777
Adjusted R Square 0.85309120935118
Standard Error 2.26683937947473
Observations 31

ANOVA
df SS
Regression 2 905.457254246
Residual 28 143.879701625
Total 30 1049.33695587

Coefficients Standard Error

Intercept -12.97013136159 3.69375976376
Price
(in lakh rupees) -0.18247382018481 0.05030397996
Top speed (Km/hr) 0.22013989044002 0.01660958741

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

There is a increase by 0.01 in the Ad

dropping of the insignificant variable
e Price(in lakh rupees), Mileage (Km/ltr), Top speed (Km/hr)

F Significance F
56.73551005488 8.74488158910387E-12 => The value is less than 0.05, hence it is significant and the

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

0.00548 -22.58608 -4.30922 -22.58608 -4.30922

0.00229 -0.30048 -0.07298 -0.30048 -0.07298

0.00000 0.18546 0.25614 0.18546 0.25614

0.84308 -0.38269 0.46529 -0.38269 0.46529

e regression line is really good with the model.

be any impact, considering that the Intercept, Price and Top Speed are the only variables having an impact on the

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

76488883451 -0.186728172116573* Price + 0.22080168203862 *Top Speed

 ent variables has any significant influence on the dependent varibales.
e
ent less
are variable
thanhas
0.05a significant
which means influence
that we on
canthe dependent
reject the Nullvariable.
hypothesis at 95% confidence level.

would be: The independent variable( X1, X2, X3 ) doesn’t have a significant influence on

Ha would 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

lly with the critical value ( 0.05 ) it can be said that the intercept, Price and Top Speed are significant.

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

₹ 25.26 ( using the price as 7 and mileage as 22 )

₹ 8
2021

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

₹ 25.26
₹ 9
2274

and rebuilding the regression model using only significant variables.

MS F Significance F
452.7286271228 88.1041690817304 8.302021E-13
5.138560772337
 t Stat P-value Lower 95% Upper 95% Lower 95.0%
-3.51136299898 0.0015305489196346 -20.536455242 -5.4038074814 -20.536455242

-3.62742312508 0.00113000293500281 -0.285516852 -0.0794307884 -0.285516852

13.25378439257 1.37964990241042E-13 0.186116693 0.2541630879 0.186116693

quared value for old regression model 0.847875220080421

uared value for new regression model 0.853091209351177

e is a increase by 0.01 in the Adjusted R square value in the new regression model this can be due to the
ping of the insignificant variables.
ce it is significant and the regression is possible
 Upper 95.0%
-5.4038074814

-0.0794307884
0.2541630879