Presented By Learning Team C

Introduction

Whitner Autoplex is a used-car dealership which sells a wide selection of vehicle types across a range of prices.

WHAT IS OUR GOAL

Management of Whitner Autoplex, who is constantly looking for new marketing advantages. Common trend between customer age and vehicle cost.

Research study be performed to see if there is a relationship between the age of the buyer and the price of the vehicle being purchased.

PURPOSE OF RESEARCH Businesses are struggling to maintain Better understanding of sales trends, management can make informed decisions Refine marketing strategies/ marketing budget efficiently by targeting the age brackets

Formulating the Hypothesis

Alternative Hypothesis Null Hypothesis

Problem Definition

Whether the age of the buyer has an impact on the amount of an automobile purchase.

Hypothesis test on the data sets Age Groups Foreign from Domestic

Test Data

Hypothesis test on the data sets Age Groups Foreign from Domestic

Identifying the Variables Youngest to Oldest Age Lowest to Highest Price

Measurement Levels Class Limits

Data Sets Buyers Age Vehicle Price Ranges

Review of Literature

Whitners data set, breaks down the data showing the qualitative data formed into a frequency table. The frequency table is also broken into different graphical charts (bar graph, pie graph) showing the frequency of the cars sold, age of buyers, and the number of cars that were domestic or foreign.

Review of Literature Continued

The samples that are being viewed are actual data set from Whitner.
The data sets have been researched and given probable sampling. The data shows that the information given from the topic discussed is correct. From the data set, the hypothesis concludes the probable cause of the buyers age being a factor in purchasing a more expensive vehicle.

Data Collection Methods

Whitner used questionnaires to quickly gather information on whether a relationship exists between the age of the buyer, and the cost of the vehicle.
Through analysis, management used previous sales figures and customer information to see if further research was required. If the sales figures showed a trend in buyer age and vehicle cost, a larger study could be attempted by mass mailing questionnaires to the local population.

Data Analysis

Measures of Central Tendency

Dispersion and Skew

Source Data
Buyer Age 25 26 28 29 30 31 32 33 34 35 36 37 38 39 40 Vehicle Price 15935 15546 20047 17399 15794 18890 19587 17891 20445 19688 20203 27453 28683 27443 20454 Buyer Age 41 42 43 44 45 46 47 48 49 50 51 53 55 56 58 Vehicle Price 21442 26613 30872 25799 19873 26651 25277 23765 20962 24324 32492 35925 32277 35851 24220

Source Data Bar Graph

Descriptive Statistics
Age Price 30

count

30

mean
standard deviation minimum maximum range skew median mode

40.70
9.35 25 58 33 0.10 40.50 None

23,726.70
5,783.10 15546 35925 20379 0.59 22,603.50 None


18 16 14 12 Percent

Age Histogram

10
8 6 4 2 0 Age

Age Histogram Analysis

Mean and Median Similar Very Flat Slight Positive (right) Skew Shows Age Selection was Evenly Distributed Ages Missing: 27, 52, 54, 57


25

Price Histogram

20

15 Percent 10 5 0

Price

Price Histogram Analysis

Mean and Median Similar Multimodal Shape Positive (right) Skew Peaks at $20,000 to $22,000 and $26,000 to $28,000 and $32,000 to $36,000 Shows Most Purchases in the $20,000 Range

Scatter Plot

40000

35000

Vehicle Price

30000

25000

20000

15000 20 25 30 35 Age 40 45 50 55 60

Scatter Plot Analysis

Moderate Association between Age and Price

Younger Buyers Purchase More Cheaper Vehicles

Only Ages Over 36 Purchased Vehicles over $21,000

Only Ages Over 43 Purchased Vehicles over $30,000

Conclusion

The examination of Whitner Autoplexs sales data has shown some interesting sales trends, and there does appear to be a relationship between buyer age and vehicle price.

There is not enough information available to fully confirm that older buyers purchase more expensive vehicles.
Many factors such as income, career status, location, personal taste, and even the type of vehicles offered for sale by Whitner Autoplex could have an impact on who buys which vehicles and why and further research would be needed to explore these variables.

Lind, D., Marchal, W., & Wathen, S. (2008). Statistical techniques in business & economics: Describing data: Frequency tables, frequency distributions, and graphic presentation. (13th Ed.) . Retrieved from the University of Phoenix eBook Collection database. Scribd. (2009). Describing Data: frequency tables, frequency distributions, and graphic presentation. Retrieved from http://www.scribd.com/doc/19615607/Chapter-02

Sekaran, U. (2003). Research Methods for Business. A Skill-Building Approach, Fourth Edition. Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/ eReader.aspx.
Wall Street Transcript (2007). Analyst Interview: Auto Dealerships: Standards & Poor's Equity Group (US). Retrieved July, 14, 2010 from University of Phoenix Electronic Reserve Readings website: http://web.ebscohost.com.ezproxy.apollolibrary.com/ehost/pdfviewer /pdfviewer?vid=7&hid=104&sid=eae8c93e-041e-4c7b-a97e610d68fc3884%40sessionmgr113