This is some interesting stuff. Will post some stuff up (out of the 30 pages). Let me know if you need any help with interpretation.
The premise was to divide all cars into luxury, performance, family, and economy, then see what different specifications were related to what additional cost difference in multiple regression.
If it used prices, it could "build" a car based on its factors and then see what the MSRP should have been, but there were heteroskedasticty issues, log price was used - or the % change in price with a level change in specifications.
All co-efficients.
How to read: Adding 1 more HP to a performance car (leaving everything else the same) would raise the price .6%. Luxury cars pay the most for an increase in gas tank size.
Only the statistically significant co-efficients.
R-squared values were above .9 for the general and luxury/performance segments. For economy/family, different specifications probably are more important to the variance in price.
The study isn't probably "done" but still interesting at this stage. Eventually could help identify the best value in a new car
The premise was to divide all cars into luxury, performance, family, and economy, then see what different specifications were related to what additional cost difference in multiple regression.
Segments
Performance – defined in general as a car with more than 150 hp/ton. This gave a group of cars that for the most part fit into the average person’s classification of “performance”
This yielded 232 observations. These were not exclusive of luxury.
Luxury – defined subjectively with mostly adhering to traditionally classified luxury brands such as Acura, Aston Martin, Audi, Bentley, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Maybach, Mercedes, Porsche, Saab, Volvo, along with VW Phaeton.
This yielded 400 observations. These were not exclusive of performance.
Economy – defined as not luxury and having less than 106 hp/ton.
This yielded 216 observations.
Family – the unspecified remainder after Performance, Luxury, and Economy cars taken out is general family cars. These are defined as cars with between 106 hp/ton and 150 hp/ton, while not being a luxury car.
This yielded 123 observations.
Performance – defined in general as a car with more than 150 hp/ton. This gave a group of cars that for the most part fit into the average person’s classification of “performance”
This yielded 232 observations. These were not exclusive of luxury.
Luxury – defined subjectively with mostly adhering to traditionally classified luxury brands such as Acura, Aston Martin, Audi, Bentley, BMW, Cadillac, Infiniti, Jaguar, Lexus, Lincoln, Maybach, Mercedes, Porsche, Saab, Volvo, along with VW Phaeton.
This yielded 400 observations. These were not exclusive of performance.
Economy – defined as not luxury and having less than 106 hp/ton.
This yielded 216 observations.
Family – the unspecified remainder after Performance, Luxury, and Economy cars taken out is general family cars. These are defined as cars with between 106 hp/ton and 150 hp/ton, while not being a luxury car.
This yielded 123 observations.
If it used prices, it could "build" a car based on its factors and then see what the MSRP should have been, but there were heteroskedasticty issues, log price was used - or the % change in price with a level change in specifications.
All co-efficients.
How to read: Adding 1 more HP to a performance car (leaving everything else the same) would raise the price .6%. Luxury cars pay the most for an increase in gas tank size.
Only the statistically significant co-efficients.
For performance and economy, stroke is less desired as this is related to an engine’s torque and does not help engine output and efficiency as much as bore, so either the horsepower-focused performance or efficiency-focused economy devalue this attribute in comparison to general cars. Automatic standard is a negative quality to have for a consumer looking to sport in a performance car, but a premium in an economy car which are generally manual to save on gas and cost.
In the performance segment regression, the focus on horsepower is apparent and so is its preference over torque. However, for the luxury sub-group, torque is attractive comparably.
If the number of cylinders is increased and horsepower remains the same, the lower cost of this should be understandable.
In the performance segment regression, the focus on horsepower is apparent and so is its preference over torque. However, for the luxury sub-group, torque is attractive comparably.
If the number of cylinders is increased and horsepower remains the same, the lower cost of this should be understandable.
The study isn't probably "done" but still interesting at this stage. Eventually could help identify the best value in a new car
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