Analysis of Machine Motors' New Vehicle Advertising Strategy

This research analyzes Machine Motors' new vehicle advertising strategy, focusing on target market and vehicle selection. The analysis includes charts, probability calculations, and descriptive statistics.

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Quantitative methods:
Name:
Institution:

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Introduction
This research is based on Machine Motors, which is contemplating to find new advertising,
television to campaign for one of their new vehicles. The research will focus on determining
which of the new vehicle should be made and which is the appropriate market for the
advertisement. Thus, the analysis will help determine which should be the target market and
whether they should produce Titanic 8 seater cars and a Trendy sports car.
Analysis
a)
The 100% Stacked Column chart for the age group is as illustrated below.
25 -35 years 35 – 50 years Over 50 years
0
20
40
60
80
100
120
Car type intending to buy by age
Titanic 8 seater car Trendy Sports car
Age group
Frequency
The stacked column chart for vehicle type is as illustrated below.

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Titanic 8 seater car Trendy Sports car
0
20
40
60
80
100
120
140
Car type intending to buy by age
25 -35 years 35 – 50 years Over 50 years
Car type
Frequency
These plots indicate that the majority of the customers are expected to be aged between 35
and 50 years. Also, most of the customers are expected to be interested in purchasing Titanic
8 seater cars. Thus, if the Machine Motor is interested in producing a new car they should
produce Titanic 8 seater cars which has a larger market niche. Also, when advertising their
new product, they should focus on peoples aged between 35-50 years.
b)
i) There is 14/202 = 0.069306931 probability that a randomly selected person aged
over 50 and is intending to buy a Trendy sports car. This probability is low and if
the company targets this age group they might generate a small amount of
revenue.
ii) There is 18.3% (0.183) likelihood that a person is aged over 50 given that they are
intending to buy a trendy sports car.1
c)
The histogram of the household taxable income (RM) is illustrated below.
1 Gerald Keller. Statistics for Management and Economics, Abbreviated. (Cengage Learning, 2015).

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200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
700,000
750,000
800,000
0
5
10
15
20
25
30
35
Histogram of household taxable income (RM)
Household taxable income (RM)
Percent
The plot indicates that the data are positively skewed, with possibility of a few outliers on the
upper side of the plot. This means that the data might not be normally distributed.2
d)
Descriptive statistics
Household taxable income
(RM)
count 100
mean 365,933.64
sample standard
deviation 111,524.29
sample variance 12,437,666,509.32
minimum 231177
maximum 797082
range 565905
skewness 1.73
kurtosis 3.26
coefficient of variation
(CV) 30.48%
1st quartile 297,713.25
median 340,473.00
3rd quartile 390,152.25
interquartile range 92,439.00
mode #N/A
The summary indicates that on average the household taxable income (RM) was $365,933.64
(SD = 111,524.29).3 The household taxable income for the population is expected to range
between $231,177 and $797,082. Quartile data indicate that 50% of the population are
2 IBID.

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expected to earn between $297,713.25 and $390,152.25.4 The median, which is also referred
to as the second quarter is $340,473.00. The skewness coefficient is 1.73 which means that
the data have a longer tail to the right, and the kurtosis value is close to 3.00 meaning that the
data have a bell-shaped plot. This supports the histogram results.
e)
We compute the cutoff points to identify the outliers in the data.
The lower limit is Q1 – 1.5*IQR, and the upper limit is Q3 – 1.5*IQR; where Q1 is the first
quartile, Q3 third quartile and QR is the interquartile quartile range.5
In this case, Q1 = 297,713.25, Q3 = 390,152.25 and QR = 92,439.00
Q1 – 1.5*IQR = 297713.25 – 1.5*92439.00 = 159054.75
Q3 – 1.5*IQR= 390152.25 + 1.5*92439.00 = 528810.75
From the data, there was no one that was earning less than $159,054.75, but there were seven
people earning more than $528,810.75. Therefore, these earnings are to be considered
outliers; $797,082, $750,393, $679,350, $656,217, $636,339, $601,446 and $598,731.
f) The probability distribution of the specification level is as follows:
Row Labels Count of levels of specification
GL 7.00%
GLE 20.00%
GLX 73.00%
Grand Total 100.00%
The summary indicates that there is a 7.0 % chance of getting a customer that would
be appealed by the GL version. There were 20.00% of the customers who were more
3 Fisz Marek, and Robert Bartoszyński. Probability theory and mathematical statistics. (July
2018) 3 J. Wiley.
4 Keller, above n 117-119.
5 Ibid 119.

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likely to be appealed to GLE and 73.0% were more likely to be appealed to GLX
version.6 Thus, Machine Motors should focus their marketing on GLX which has the
largest potential market.
Conclusion
The summary indicates that Machine Motor should produce Titanic 8 seater car. In their
advertisement, they should target people aged between 35–50 years. The data indicate that
there are people who have extreme household taxable income (RM). The company should
focus their marketing on GLX.
6 Ott RL, Longnecker MT. An introduction to statistical methods and data analysis. (Nelson Education; May
2015).

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Bibliography
A. Articles/Books/Journals
Fisz Marek, and Robert Bartoszyński. Probability theory and mathematical statistics. (July
2018) 3 J. Wiley,
Gerald Keller. Statistics for Management and Economics, Abbreviated. (Cengage Learning,
2015).
Ott RL, Longnecker MT. An introduction to statistical methods and data analysis. (Nelson
Education; May 2015).