Mathematics & Economics Essay: Analysis of Factors Affecting Car Ownership
I will attach all the completed documents needed to complete this part of the project. The first attachment will be the full project instructions, yet the bottom high lighted portion is what I need completed which is also stated below.
Course Report - Elements to Include:
1. Abstract: A one paragraph summary of what the project was about, what you learned, and what you ended up finding. It should summarize the entire report.
2. Introduction: A discussion of what questions you are interested in.
3. Data Set: Describe how the data was used and the results of your calculations. Be sure to embed the graphs and charts into your Word document or audio/visual presentation.
4. Analysis: Discuss what the data told you. Was anything surprising? What other questions do you have about the results and the data? From the results, which car do you believe would be the best fit for your needs.
5. Limitations of study and conclusion: Describe any limitations of this study and how those limitations may have hindered this study. What would you like to see in future studies of this type? Should other variables be considered and if so, which ones?
6. Reference page in APA format.
The Course submission will be in the following format:
1. Typewritten: Written reports should be at least four (4) pages in length, double-spaced, and contain good grammar and punctuation. Include headings for each section and references and address all the elements below. Use Arial or Times New Roman, Size 12 font with 1” margins all around and, when applicable, include graphs and/or tables (imbedded from Excel or other statistical software). Include a title page and references (if used) in APA formatting.
As with all professionally presented documents, use proper APA citations when referring to work or ideas from others. Refer to the Course Project Rubric located in each part’s assignment submission and under Course Resources for further guidelines.
Analysis of Factors Affecting Car Ownership
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1. Abstract
Many factors affect car ownership among households. Households that acquire their first car mainly consider the prices and other factors second. On the other hand, when buying their second or third car households don’t pay much attention to the prices but other factors play a role in determining the car to purchase. This study seeks to examine various factors that determine car ownership other than the price. Consumer Reports has developed a statistic known as value score that measures the five-year owner costs, overall road-test scores and the predicted reliability ratings.
The study uses a sample of 20 cars for the analysis. The results show that there is no associated relationship between the predicted reliability and the prices of the cars. Additionally, the road test score has no associated relationship with the prices of the cars. This is conclusive since the P-values for the coefficients of the price for the respective regression equations are greater than 0.05 at 5 percent significance level.
2. Introduction
Car ownership is determined by a number of factors ranging from individual aspects to industry key player aspects. According to Consumer Reports, the issue of price doesn’t really feature so much on car ownership criteria, rather other factors such as reliability and performance matter more. Consumer Report’s statistic known as the value score measures the five-year ownership costs, overall road-test scores and the predicted reliability ratings. The five-year ownership costs consist of total ownership costs for the last five years including, depreciation, fuel, maintenance and repairs etc.
Consumer Reports (2020) ranks Mazda as the most reliable car followed by Toyota, though previously it ranked the Mazda second. This value score criterion takes the national average of 12,000 miles in a year and an average cost per mile covered taken as a measure of five-year owner costs. The road test scores take the results of above 50 tests and evaluates on a 100-point scale where higher scores show better performance, comfort, convenience and fuel economy. The predicted reliability ratings use a scale of 1 to 5, where 1 represents Poor, 2 is Fair, 3 is Good, 4 is very Good and 5 is Excellent.
This project seeks to use the value score to analyze the car ownership preferences for a sample of 20 cars. The project seeks to determine the relationship between the different model types by looking at the value score of the car in relation to the cost of the vehicle, cost per mile versus the score and the total reliability of the car. Also, a regression analysis is undertaken to determine the predicted reliability against the price of the car models selected.
3. Data Set
The project uses a sample of 20 car models to answer the research question-to determine the factors that affect thecar ownership. Firstly, the project determines the average price of the cars as $ 26,883.70. Also, a table of measures of central tendency is created as shown below:
Table 1: Measures of Central Tendency
Cost/Mile
Road-test Score
Predicted Reliability
Value Score
Mean
0.64
80.45
3.75
1.46
Median
0.67
82
4
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