Car Discounts - Fast Eddie's Auto Sales

Discount Age Income Sex Marital Status

998
27
47645 M
Married
1422
41
32253 M
Single
2520
21
28650 M
Single
1649
46
29190 F
Married
1354
27
37997 M
Divorced
1525
43
25400 F
Single
1400
55
30282 F
Divorced
676
34
45671 F
Single
919
39
46477 F
Married
1431
19
27826 M
Single
1838
46
31731 M
No Response
1376
34
20293 M
No Response
950
35
32655 F
Married
1472
39
35605 M
Divorced
2147
19
25801 M
Single
1538
29
20930 M
Married
988
43
49336 F
Divorced
1164
35
39360 M
Married
131
38
40623 F
Single
564
40
47474 F
Single
1827
52
36371 M
Married
1075
46
37546 F
Divorced
1334
41
31734 F
No Response
1526
21
21903 M
Divorced
1844
28
30568 F
Single
2375
42
21020 M
Married
1679
43
28799 M
Married
945
37
50837 M
Married
1116
44
41937 F
Divorced
1538
38
30610 M
Single
532
53
48257 F
Divorced
2133
18
20689 M
Divorced
1918
36
32626 M
Married
1743
33
27015 M
Single
648
43
41184 F
No Response
990
48
43452 F
Single
1766
46
29314 M
Single
1948
39
38072 M
Single
1557
31
21022 M
Married
800
35
33224 F
Single
339
44
61025 F
Married
569
41
46329 F
Single
1138
25
28018 F
Single

1968
1273
1657
1852
2137
673
2162
1733
1821
336
884
892
801
1495
1014
1574
1048
1057
785
1541
1990
804
361
1490
1655
597
1735
189
697
692
1642
859
2110
1233
419
1982
1791
1487
877
1203
410
997
727
1321
864

31
57
26
25
29
43
25
42
39
30
33
30
37
37
31
40
35
41
42
30
51
50
54
21
57
27
56
54
39
38
31
52
38
35
42
20
24
23
25
57
29
40
22
37
51

23280 M
47204 M
26161 M
28876 M
21388 M
54008 F
27396 M
38142 M
33869 M
38950 F
32990 F
37660 M
45593 F
20758 F
28605 F
33357 M
33795 F
48092 M
40369 F
20610 M
24734 F
44085 F
60448 F
20912 M
40701 M
37258 F
34783 M
43000 F
41004 F
43955 F
28891 F
45577 F
19016 M
36357 M
64663 F
27712 M
21559 F
28597 M
36041 F
50666 M
47653 F
47659 M
38710 F
36310 F
51353 F

No Response
Married
Married
Divorced
Single
Single
Divorced
No Response
Married
Married
Married
Single
No Response
Married
Married
Single
Single
Single
Married
Married
Single
No Response
Single
Married
Married
Single
Married
Divorced
Married
Single
Single
Single
Single
Single
Married
Married
Married
Single
Divorced
Divorced
Married
Married
Single
Married
Married

786
421
1832
1382
679
1342
1266
1460
1621
1181
784
1690

23
35
23
33
55
33
41
39
33
45
41
27

29645 F
42593 F
26356 F
28056 F
55157 F
27594 F
42611 M
32851 F
30493 F
42076 F
41515 F
22180 M

Divorced
Single
Single
Married
Married
Single
Married
No Response
Single
Married
Married
Married

Car Discounts - Fast Eddie's Auto Sales

#1.

Discount as a Function of Income

3000
2500
2000
Discount

1500
1000
500
0
10000

20000

30000

40000

50000

60000

70000

Income

#2.

r=

-0.73

The relationship between the two variables is a moderate and negative linear correlation. This
means that high values of x are associated with low values of y, and high values of y are
associated with low values of x. Thus, a high income is associated with a low discount, and a hig
discount is associated with a low income.

#3.

Linear Regression Equation: y^ = a + bx

b= slope =
-0.04
a = y-intercept =
2626.04
Y^ = 2626.04 + -.04(x)
R^2=
0.53

The meaning of slope in terms of this data is how many units y changes in response to each un
change in x. This means that slope indicates how much discount changes in response to each un
change in income. Thus, for each one dollar increase in income, discount decreases by four cent
The meaning of the y-intercept in terms of this data is where the line of best fit hits the y axis. Th
can also be referred to as the predicted value of the discount when income is zero.

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

#4.

Income
47645
32253
28650
29190
37997
25400
30282
45671
46477
27826
31731
20293
32655
35605
25801
20930
49336
39360
40623
47474
36371
37546
31734
21903
30568
21020
28799
50837
41937
30610
48257
20689
32626
27015
41184
43452
29314
38072
21022
33224

Jordan Provost

Discount
998
1422
2520
1649
1354
1525
1400
676
919
1431
1838
1376
950
1472
2147
1538
988
1164
131
564
1827
1075
1334
1526
1844
2375
1679
945
1116
1538
532
2133
1918
1743
648
990
1766
1948
1557
800

Predicted Discount
812
1398
1535
1515
1180
1659
1473
887
857
1567
1418
1854
1383
1271
1644
1829
748
1128
1080
819
1242
1197
1418
1792
1462
1826
1530
691
1030
1461
789
1838
1384
1598
1058
972
1510
1177
1826
1361

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

61025
46329
28018
23280
47204
26161
28876
21388
54008
27396
38142
33869
38950
32990
37660
45593
20758
28605
33357
33795
48092
40369
20610
24734
44085
60448
20912
40701
37258
34783
43000
41004
43955
28891
45577
19016
36357
64663
27712
21559
28597
36041
50666
47653
47659
Jordan Provost

339
569
1138
1968
1273
1657
1852
2137
673
2162
1733
1821
336
884
892
801
1495
1014
1574
1048
1057
785
1541
1990
804
361
1490
1655
597
1735
189
697
692
1642
859
2110
1233
419
1982
1791
1487
877
1203
410
997
Case Problem #2
Fast Eddie's Auto Sales

303
862
1559
1740
829
1630
1527
1812
570
1583
1174
1337
1143
1370
1192
890
1836
1537
1356
1340
795
1089
1841
1684
948
325
1830
1077
1208
1302
989
1065
953
1526
891
1902
1242
165
1571
1805
1537
1254
697
812
812
7 October 2015

38710
36310
51353
29645
42593
26356
28056
55157
27594
42611
32851
30493
42076
41515
22180

727
1321
864
786
421
1832
1382
679
1342
1266
1460
1621
1181
784
1690

#5.

1152
1244
671
1498
1005
1623
1558
526
1576
1004
1376
1465
1024
1046
1782

Actual vs Predicted Discount

Discount

Predicted Discount

3000
2500
2000
Discount

1500
1000
500
0
10000

20000

30000

40000

50000

60000

7000

Income

#6.

Discount as a Function of Age

3000
2500
2000

Discount

1500
1000
500

Jordan Provost

0
15

Case Problem #2
Fast Eddie's Auto Sales
20

25

30

35

7 October 2015
40

45

50

55

60

Discount

1500
1000
500
0
15

20

25

30

35

40

45

50

55

60

Age

#7.

r=

-0.27

The relationship between the two variables is a minimal and negative linear correlation. This
means that in general, high values of x are associated with low values of y, and high values of y
are associated with low values of x. Thus, a high age is associated with a low discount, and a hig
discount is associated with a low age. However, this correlation is -0.27 which is close to zero an
far from perfect. The line of best fit does not fit the data very well. Additionally, there is no clea
link between the data. Age does not logically affect the amount of a discount received. Income
functioning as a lurking variable in this problem. The reason there is any correlation between ag
and discount is because typically, the older an individual is, the more money he or she tends to
make. Thus, low age leads to high discount because it is associated with low income. Conversely
low discount means a high age because it is associated with high income. This data proves tha
correlation does not mean causation.

#8.

#9.

Linear Regression Equation: y^ = a + bx

b= slope =
-14.24
a = y-intercept =
1793.38
Y^ = 1793.38 + -14.24(x)
R^2=
0.07
Age
27
41
21
46
27
43
55
34
39
19
46
34

Jordan Provost

Discount
998
1422
2520
1649
1354
1525
1400
676
919
1431
1838
1376

Predicted Discount
1409
1210
1494
1138
1409
1181
1010
1309
1238
1523
1138
1309

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

35
39
19
29
43
35
38
40
52
46
41
21
28
42
43
37
44
38
53
18
36
33
43
48
46
39
31
35
44
41
25
31
57
26
25
29
43
25
42
39
30
33
30
37
37
Jordan Provost

950
1472
2147
1538
988
1164
131
564
1827
1075
1334
1526
1844
2375
1679
945
1116
1538
532
2133
1918
1743
648
990
1766
1948
1557
800
339
569
1138
1968
1273
1657
1852
2137
673
2162
1733
1821
336
884
892
801
1495
Case Problem #2
Fast Eddie's Auto Sales

1295
1238
1523
1380
1181
1295
1252
1224
1053
1138
1210
1494
1395
1195
1181
1267
1167
1252
1039
1537
1281
1323
1181
1110
1138
1238
1352
1295
1167
1210
1437
1352
982
1423
1437
1380
1181
1437
1195
1238
1366
1323
1366
1267
1267
7 October 2015

31
40
35
41
42
30
51
50
54
21
57
27
56
54
39
38
31
52
38
35
42
20
24
23
25
57
29
40
22
37
51
23
35
23
33
55
33
41
39
33
45
41
27

1014
1574
1048
1057
785
1541
1990
804
361
1490
1655
597
1735
189
697
692
1642
859
2110
1233
419
1982
1791
1487
877
1203
410
997
727
1321
864
786
421
1832
1382
679
1342
1266
1460
1621
1181
784
1690

1352
1224
1295
1210
1195
1366
1067
1081
1024
1494
982
1409
996
1024
1238
1252
1352
1053
1252
1295
1195
1509
1452
1466
1437
982
1380
1224
1480
1267
1067
1466
1295
1466
1323
1010
1323
1210
1238
1323
1153
1210
1409

Actual vs Predicted Discount

Case Problem #2
Fast Eddie's
Auto Predicted
Sales Discount
Discount

Jordan Provost
3000

7 October 2015

Actual vs Predicted Discount

Discount

Predicted Discount

3000
2500
2000
Discount

1500
1000
500
0
15

20

25

30

35

40

45

50

55

60

Age

#10.

Y^ = 1793.38 + -14.24(24)
Y^ = 2626.04 + -.04(38,000)

1451.64
1179.49

According to the regression equations above, the discount for a 24-year old would be $1,452, an
the discount for a person with income of $38,000 would be $1,179. The prediction that is the mo
reliable is the $1,179. This is so because it is not logical to give or not give people discounts base
on their age. Age does not logically factor into worthiness of a discount. However, income does.
makes sense that a person with less income receives more of a discount because they have les
money, and a person with more income receives less of a discount because they have more
money. Since a twenty-four year old person could have any amount of income, the $1,179 is fa
more reliable than the $1,452 because the data has a clear and logical correlation.

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

ome

00

60000

70000

-0.73

gative linear correlation. This

, and high values of y are
with a low discount, and a high
e.

nges in response to each unit

anges in response to each unit
count decreases by four cents.
e of best fit hits the y axis. This
t when income is zero.

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

unt

0000

60000

70000

ge

45

Case Problem #2
Fast Eddie's Auto Sales

Jordan Provost
50

55

60

7 October 2015

45

50

55

60

-0.27

ative linear correlation. This

ues of y, and high values of y
with a low discount, and a high
0.27 which is close to zero and
Additionally, there is no clear
a discount received. Income is
s any correlation between age
ore money he or she tends to
with low income. Conversely, a
ncome. This data proves that

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

unt
Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015

unt

45

50

55

60

1451.64
1179.49

year old would be $1,452, and

The prediction that is the most
ot give people discounts based
unt. However, income does. It
count because they have less
nt because they have more
t of income, the $1,179 is far
and logical correlation.

Jordan Provost

Case Problem #2
Fast Eddie's Auto Sales

7 October 2015