Study on Business Statistics

BUSINESS
STATISTICS
STUDENT ID:
[Pick the date]

BUSINESS STATISTICS
Introduction
Data has been collected based on a used car website in 2016. 1049 sample of BMW have been
included in the study. The objective of the given study is to determine the undelrying relationship
between price (dependent variable) and various independent variables which include age, km
travelled, engine power rating besides hosts of other factors which are captured through dummy
variables. Various statistical technqiues have been used to conduct the analysis on the given data
to answer the various questions raised.
Analysis
A. Descriptive statistics for the data is shown below:
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BUSINESS STATISTICS
The first quartile, third quartile and inter quartile range for variables price, kilometer and Power
KW is shown below:
Central tendency: measures of central tendency are termed as agreed when mean, median, and
mode are equal. Further, when the data variable is having skew, then the distribution of the data
would not be termed as normal.
Variability: In order to comment on the dispersion of the variables, variance, standard deviation,
range, inter quartile range would be taken into consideration. Degree of dispersion would be
analyzed by taking the standard deviation along with the mean value.
Shape: The positive skew in the data would represent that data is showing rightward tail and
similarly negative skew represent that data is sowing leftward tail. Variables Price, Age,
Convertible, Power KW, Hatchback and coups are showing positive skew and Automatic,
Kilometer, Petrol and Sedan are showing negative skew.
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BUSINESS STATISTICS
Comment on Dummy Variability: The mean value for variable, Petrol comes out to be 0.63. This
indicates that nearly 63% of the vehicles are petrol cars and rest 37% of the vehicles are diesel
vehicles.
B. Graphical representation of distribution of price is represented below:
From the above histogram, it would be fair to conclude that data represents long right ward tail
which is the indicative of positive skew. Therefore, the data is not normally distributed and also,
that nearly 70% of the vehicles are representing the price below $18,081.
C. Box and whisker plot for the variable age is represented below:
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