This website uses cookies to ensure you have the best experience. Learn more

Ford Mustang Case 7 Essay

3121 words - 13 pages

11
Ford Mustang Case 7
Applied Managerial Statistics

To determine the factors that affect Selling Price of Ford Mustangs, we need to select the independent factors or variables to test the hypothesis to see if these factors do have any affect on the selling price of Ford Mustangs cars. In this case I have selected nine Independent variables that we have used to study the relationship with selling price are (1) Whether the car is a convertible or not convertible (2) Transmission Type (3) Presence or absence of air conditioning (4) GT Model or not (5) Private owner or dealer owner (6) Age of car (7) Mileage (8) # of cylinders (9) Color.
We want to start by conducting a hypothesis test to ...view middle of the document...

28084 | 0.0000 | 5840.293 | 8722.107 |
CONVERT | 3194.4 | 1324.978 | 2.410909 | 0.021642 | 498.7108 | 5890.089 |
Conclusion: Reject the null hypothesis, since the P-value rounded up, (0.022) is less than the significance level (0.05). The sample provides enough evidence to conclude that the mean price depends on whether the car is a convertible.
We run the same independent test on each of the other eight variables in a similar manner as we did above; we conducted the hypothesis test to study the affect of Independent variable “TRANS” on the Selling Price. Following are the Null and Alternate Hypothesis set to study the relationship between the transmission type and price.
The null hypothesis tested is
H0: The mean price does not depend on the transmission type.
The alternative hypothesis is
H1: The mean price depends on the transmission type.
SUMMARY OUTPUT | | | | | |
| | | | | | |
Regression Statistics | | | | | |
Multiple R | 0.147477 | | | | | |
R Square | 0.021749 | | | | | |
Adjusted R Square | -0.00789 | | | | | |
Standard Error | 3798.379 | | | | | |
Observations | 35 | | | | | |
| | | | | | |
ANOVA | | | | | | |
  | df | SS | MS | F | Significance F | |
Regression | 1 | 10585400 | 10585400 | 0.733687 | 0.397868 | |
Residual | 33 | 4.76E+08 | 14427683 | | | |
Total | 34 | 4.87E+08 |   |   |   | |
| | | | | | |
  | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% |
Intercept | 7744.857 | 828.8743 | 9.343826 | 0.0000 | 6058.498 | 9431.216 |
TRANS | 1122.571 | 1310.565 | 0.856555 | 0.397868 | -1543.8 | 3788.939 |
Conclusion: Fails to reject the null hypothesis, since the P-value (0.398) is greater than the significance level (0.05). The sample does not provide enough evidence to conclude that the mean price depends on the transmission type.
Now we set the Null and Alternate Hypothesis to study the relationship between the independent variables “AIR” and the dependent variable “SELLING PRICE”.
The null hypothesis tested is
H0: The mean price does not depend on, presence or absence of air conditioning.
The alternative hypothesis is
H1: The mean price depends on, presence or absence of air conditioning.
SUMMARY OUTPUT | | | | | |
| | | | | | |
Regression Statistics | | | | | |
Multiple R | 0.108856 | | | | | |
R Square | 0.01185 | | | | | |
Adjusted R Square | -0.01809 | | | | | |
Standard Error | 3817.55 | | | | | |
Observations | 35 | | | | | |
| | | | | | |
ANOVA | | | | | | |
  | df | SS | MS | F | Significance F | |
Regression | 1 | 5767203 | 5767203 | 0.395727 | 0.533635 | |
Residual | 33 | 4.81E+08 | 14573689 | | | |
Total | 34 | 4.87E+08 |   |   |   | |
| | | | | | |
  | Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% |
Intercept | 6545 | 2699.416 | 2.424599 | 0.020964 | 1052.993 | 12037.01 |
AIR | 1748.818 | 2780.013 | 0.629068 | 0.533635 | -3907.17 | 7404.801 |
Conclusion: Fails to reject the null hypothesis, since the P-value (0.534) is...

Other Papers Like Ford Mustang Case 7

North West Company Essay

1520 words - 7 pages Ford Case Analysis Questions 1. Discuss Bill Ford’s actions using the steps of the basic control process as a model. Did he follow this process? What did he do in each step? Did he leave out any important steps? What is left to do? 2. Can Ford’s turnaround plan be characterized as tactical or strategic controls, and why? How are the actions and decisions of lower-level managers likely to be influenced by the plan? 3. How does the

Pratice Statement Essay

1077 words - 5 pages duration of the project. | Exclusions | What are the boundaries of the project? What is to be included and what is to be excluded from the project? The following is a list of Exclusions: 1. The engine will be built using the specification and design of original Ford Motors Company blueprints. 2. The engine is too made with the assumption that it will be used in future Ford Mustang models. 3. Project Manager responsible for all outsourcing

Ford Motor Company

1098 words - 5 pages Case Study for Ford Motor Company Supply Chain Strategy Prepared by Student: Prepared for Instructor: This report is submitted in partial fulfillment of the requirements of the course Table of Content Subject Page Executive Summary ............................................................................... 2 Issue Identification

Target Corporation Case Analysis

2566 words - 11 pages Detroit Cars Case Analysis Discussion Group Two: Dan Richards Michael McAnulty Harley Tuck Jr. Alexander Case MIS 311 Intro to Information Systems Introduction Ford Motor Company has always been considered one of the “Big 3” US auto manufacturers. Throughout the 1980s and continuing even today, foreign companies (especially Japanese companies) began aggressively competing in the U.S. with high quality, lower-cost automobiles

Ford Motor Company

3427 words - 14 pages ” (Sustainability report 2010/11, 2011). Ford’s goal is to have zero serious injuries in the workplace. In 2010, Ford had 108 serious injuries among their direct employees (sustain report). Ford is working on improving the lost-time case rate. These are circumstances in which employees miss one or more days of work. In 2010, the lost-time case rate improved by dropping 11 percent compared to 2009 (Sustainability report 2010/11, 2011). Honda regards

Suvs, the Environment, Safety, and Stakeholders

4373 words - 18 pages pickups, 32 had higher death rates, and the death rates for 7 sports cars (including the Mazda Miata and Ford Mustang) were all higher.62 However, Ford continued to feel the sting from the questions about SUVs, and its CEO, Jacques Nasser, resigned in October 2001 following questions by the Ford board about his management style and approach to issues and employees. In March 2000, all the automakers announced that they would redesign their

Ford Case Study

2087 words - 9 pages Ford Case Report Virtual Integrate or Not? Table of Contents -------------------------------------------------------------------------------------------------------------------------------Executive Summary 3 Issue Identification 4 Environmental &amp

Ford Case Study - Supply Chain

4444 words - 18 pages outstanding. Ford also needs to manage this change through our dealer network which does not exist in Dell’s world. To further complicate this matter, the Ford dealer network is powerful and independent and there are long standing ongoing relationship issues with them. Another key factor to consider in this area is that Dell evolved using the “virtual integration” model and did not have to evolve into it as would be the case at Ford where the

Ford Paper

4517 words - 19 pages war affected Ford adversely as their US sales declined by 7%.[6] According to BP's Statistical Review of World Energy, published in June 2007, it shows that the world still has enough "proven" reserves to provide 40 years of consumption at current rates.[7] The Japanese car manufacturers have produced small cars for many years and imported them to the United States. The market was there and since smaller cars get more and more popular, also

Toyota Analysis (Half Done)

3527 words - 15 pages available. The subsitutes to Toyota products are Honda, Volkswagen,Ford and etc. Products | Differentiation | Toyota 4Runner Vs Ford Explorer | $27,500 vs $29,280-Displacement: 4Runner has a engine displacement of 4 ltr i.e 4000 cc engine in comparison to the engine displacement of Explorer which has 3.8 ltr-Torque: 4Runner produces a great torque of 278 lb.-ft@ 4400rpm which is much more than torque of explorer which produce 254lb.-ft.@3700rpm

Hanary Ford Modal

5201 words - 21 pages bothered Henry Ford. He used his new power to curtail their production, a move that coincided with the Panic of 1907. This case of accidental good timing probably saved the company. Ford, insisting that high prices ultimately slowed market expansion, had decided in 1906 to introduce a new, cheaper model with a lower profit margin: the Model N. Many of his backers disagreed. While the N was only a tepid success, Ford nonetheless pressed forward with

Related Essays

Chevrolet Domination In The Twentieth Century

1911 words - 8 pages crash. That is why auto makers work hard to improve vehicle safety. In the case of Ford and Chevy, Chevrolet does better. Chevrolet makes sure their vehicles are safe overall. This is evident in the classic Ford Mustang vs. Chevy Camaro battle. While both received a total of 16 stars out of a possible 20, the Camaro?s stars were more evenly dispersed. The 2001 Chevrolet Camaro received a 9 out of a possible 10 stars on the Frontal Star Rating. The

Ford Case Study

969 words - 4 pages CASE ASSIGNMENT: Ford Motor Co. 1. One Ford; One Big Turnaround In 2006, as the United States was nearing one of the worst economic recessions in its history, Ford Motor Co. was best known for big brawny pickups, gas-guzzling SUVs, and the all-American Mustang. That year, Ford posted a $12.6 billion loss. In 2007, it posted a $2.7 billion loss, and U.S. and global economies dove into a three-year recession. During that recession, Ford’s

Ethics Essay

2999 words - 12 pages allows any Ford owner to create personalized auto data pages to manage vehicle maintenance records online. Ford’s www.ownerconnection.com provides 24/7 connectivity between the company and its customers, and the Ford Online Store allows customers to order selected parts and accessories from a home PC. “Highly satisfied customers become advocates,” says Yost. “We see huge revenue opportunities for us in developing and retaining very loyal advocates

Carmakers Essay

1583 words - 7 pages Assignment #3: Case 7-2 “Carmakers Target Gen Y” Monique S. Kearson Dr. Bao MKT 505 February 12, 2012 Introduction Generation Y is a group of US citizens that were born in the early 1980’s and 2002. They are referred to as Gen Y and Eco Boomers, as they have been said to have a tremendous impact on the generation. With totals nearing 81 million the Gen Y era has been the largest of that since the Baby Boomer age. They hold great credit