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In: Business and Management

Submitted By keller22
Words 878
Pages 4
Executive Summary

This project will be focusing on 35 Ford Mustangs with a multitude of variables. The variables include price, age of car, mileage, transmission, air conditioning, amount of cylinders, vehicle color, ownership style, body style, and model type. This study will also determine if the mean price of the vehicle is dependent upon the previously mentioned variables excluding vehicle color; identifying variables of significance. Highlighting the significant variables and how they affect price will serve as a tool assisting the company with pricing future Ford Mustangs.
Ford Mustangs
Tom has currently opened a used car dealership. Previously Tom repaired and collected older model cars as a hobby and recently decided to turn his hobby into a career for himself. Tom has a great deal of technical understanding concerning car parts and how to repair certain vehicle parts. However, Tom has little to no experience on the business end of owning a car dealership. It has been reported that Tom’s asking prices for his vehicles are not aligned with the average market price. Ultimately, Tom does not base his prices on the used car market price; instead he bases it on assumptions. For example, Tom thinks, red cars give the impression of being “sportier and can sell at a premium,” he also believes older models normally sell for less. After much dismay and inaccurate rates in sells, Tom tries to systematically price his Mustangs, but due to the multitude of variables, Tom found this task challenging. (Bowerman, 2003, p. 3)

This report will provide information obtained through hypothesis confidence intervals and hypothesis testing, multiple and simple regression models, descriptive statistics, and historical background information pertaining to Tom’s Ford Mustangs. This report will pay close attention to the possible relationship between the dependent…...

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