Submitted By: Muhammad Amir

MBA (Finance)
Group “A”
 Table of Contents

Introduction .................................................................................................................................................. 3

Methodology ................................................................................................................................................ 3

Data Analysis ................................................................................................................................................ 3

IPhone Mobile data Analysis:..........................................................................................................3

Table 1 ................................................................................................................................................... 4

Table 2 ................................................................................................................................................... 4

Table 3 ................................................................................................................................................... 5

Samsung Mobile data Analysis:.......................................................................................................6

Table 4 ................................................................................................................................................... 6

Table 5 ................................................................................................................................................... 7

Merged Brands’ Data Analysis: .......................................................................................................8

Table 7 ................................................................................................................................................... 8

Table 8 ................................................................................................................................................... 8

List of Tables

Table 1 iPhone Model R-Square .................................................................................................................. 3

Table 2 ANOVA Summary of iPhone Model ................................................................................................ 4
Table 3 iPhone Mobile Regression Analysis ................................................................................................ 4
Table 4 Samsung Model R-Square ............................................................................................................... 6
Table 5 ANOVA Summary of Samsung ........................................................................................................ 6
Table 6 Samsung Mobile Regression Analysis ............................................................................................. 7
Table 7 Merged Brands R Square ................................................................................................................. 8
Table 8 ANOVA for Merged Data ................................................................................................................. 8
Table 9 Merged Data Regression Analysis................................................................................................... 9
Introduction
This report is about cellphones, in which we were asked to find the effect of the features of the
mobile in its prices. For the analysis, we took two models of the cellphone which are iPhone and
Samsung. We collected the data for these two models separately, which are widely available on
different websites. We took the data of 15 new launched models of the both IPhone and samsung,
the data were about the various features of the these models such as Colors available in each model,
storage based data, Ram Size of the cellphones, Camera megapixels etc. Broadly, the purpose of
this report was to explore what are those determinants that may increase the prices of the
cellphones and what if we bring extra extension in these features whether these increases the price
or decrease the price of the Mobile phones.

Methodology
We used multiple linear regression model in this report for analyzing the data. The type of the data
used in this report is secondary data which were available online. We took Prices of the mobile as
dependent variable as we are interested in finding the cause and effect of the independent variables
in it, and the independent variables which we considered for the analysis are the features of theses
mobile phones models.

We computed the regression on each model separately and once we computed the regression on
both the iPhone and samsung merged data and took these models as dummy variables. We assigned
“0” code to IPhone and “1” to Samsung.

Data Analysis
This section includes the output of the analysis and its discussion which are given below in turns:

IPhone Mobile data Analysis:

Table 1 iPhone Model R-Square

Regression Statistics
Multiple R 0.995727278
R Square 0.991472813
Adjusted R Square 0.98199816
Standard Error 9565.097459
Observations 20
Table 1
Table 1 shows the R Square output of the iPhone mobile data, in which R Square shows that the dependent
variable is explained by independent variables 99%. Adjusted R Square is the modified version of the R
square but it excludes the variation that cause in dependent variable by those independent variables
which do not exactly explain the dependent variable which is 98%. In other words we can say, it is the
pure variation that occurred in dependent variable which caused by relevant independent variables.

Table 2 ANOVA Summary of iPhone Model

Description df SS MS F Significance F
Regression 10 95740637709 9574063771 104.6447674 0.000000045
Residual 9 823419804.6 91491089.4
Total 19 96564057514

Table 2
Table 2 describes the model significance for iPhone model. The model is fit and significant based
on ANOVA test. The significance value is much lower than the Alpha value which means that the
model is strongly significant.

Table 3 iPhone Mobile Regression Analysis

Descriptions Coefficients Standard Error t Stat P-value
Intercept 19647.98573 34355.44861 0.571903047 0.581388363
Color_2 -9799.269674 3924.257944 -2.497101316 0.034023263
Battery mAh -8.426612015 11.36225631 -0.741631924 0.477216192
Ram GB 6003.303268 8530.537594 0.703742666 0.49939387
Memory Built-in 173.1655689 380.0008326 0.455697867 0.659402743
Front Camera MEgaPex 6699.153574 2418.048811 2.770479051 0.021736476
Rear Camera one -67624.84921 17644.73737 -3.83257896 0.004011846
Rear Camera Dual -46125.95172 20374.98711 -2.263851823 0.049861694
DisplaySize 21357.61188 11895.55696 1.795427651 0.106155926
IOS 2493.109067 1410.935215 1.766990461 0.111032221
Table 3
Table 3 presents the regression analysis output of the iPhone model in which each P-value shows
the significance of the variables and coefficients of correlation shows the cause and effect of the
independent variables on dependent variable.

Discussion:

o Colors of the Mobile has statistically significant relationship with the price of the mobile
based on P-value which is 0.02. The coefficient of correlation value shows if any change
brought in color of the mobile will decrease the price of the Mobile by 9799 rupees.
o Battery mAH is significantly insignificant based on P-value which is greater than 0.05.
The coefficient of correlation value shows negative correlation with the price, it means if
we increase battery mAH by any number, it will decrease the price of the mobile by 8
rupees which is very much low.
o Ram GB has also statistically insignificant relationship based on P-Value which is greater
than 0.05. The coefficient value tells us that if we increase RAM by any number will bring
change the price of the Mobile by 6003 rupees. So it is important factor.
o Memory built-in is statistically insignificant. The coefficient value shows positive
relationship with price which means if bring any increase in memory, will increase our
price by 173 rupees.
o Front Camera Megapixel has statistically significant relationship with dependent variable
based on P-value which is less than 0.05. The coefficient value shows positive relationship,
if any increase brought in Front camera megapixel, will bring increase in the price by 6699.
o Rear one camera I made dummy variables here for rear camera because it has three
categories, some mobiles have one camera and some of them have two cameras and some
of them have three cameras. ( One Camera = 1 , Three Cameras=0 ) (Two Cameras=1,
Three cameras = 0). Based on P-value, it has significant relationship as the alpha value is
less than 0.05. The Coefficient value tells us if it has one rear camera it will decrease price
of the Mobile by 47977. It is the difference between the intercept value and this variable
value. The intercept value here shows those models which has three rear cameras will
increase prices by 19647.
 o Rear Dual cameras it has also statistically significant relationship based on alpha value.
The coefficient value shows if the model has dual camera will decrease the prices by 26478
rupees and it has three rear cameras will increase the price by 19647 rupees.
o Display Size has insignificant relationship with dependent variable but based on coefficient
value if any increase brought in display size will increase price of the mobile by 21357
rupees.
o IOS has also insignificant relationship based on P-value. The coefficient value is positive
thus it tells us if we bring any increase in IOS system will increase the price of the iPhone
by 2493 rupees.

Samsung Mobile data Analysis:

Table 4 Samsung Model R-Square

Regression Statistics
Multiple R 0.975082545
R Square 0.950785969
Adjusted R Square 0.885167262
Standard Error 14385.78197
Observations 15

Table 4
Table 4 shows the R Square and Adjusted R Square of Samsung Mobile. These shows that there
are 95% R Square and 88% variation are explained by the independent variables in dependent
variable. The difference in these are explained in Table 1.

Table 5 ANOVA Summary of Samsung

Description df SS MS F Significance F
Regression 8 23988993584 2998624198 14.48955653 0.002130221
Residual 6 1241704337 206950722.9
Total 14 25230697922
Table 5
Table 5 describes the Samsung regression Model significance. This model is strongly significant
as its P-value is less than 0.05. So we can say that the model is statistically significant.

Table 6 Samsung Mobile Regression Analysis

Description Coefficients Standard Error t Stat P-value
Intercept -427613.295 227242.5995 -1.881747946 0.108890818
Color_2 6660.948467 10078.68356 0.660894692 0.533219274
Battery mAh -38.89060813 17.94889791 -2.166740729 0.073391158
Ram GB 22710.85022 3370.774636 6.737575978 0.000520641
Memory Built-in 287.1831494 166.2972939 1.726926174 0.134926885
Rear Camera MegaPixel -1504.439702 640.6301035 -2.348374973 0.057185326
Andriod OS 655.491837 227.2138907 2.884910931 0.02787825
Rating 41283.75565 26789.87205 1.541021009 0.17424523
Display size 54120.60214 27404.06739 1.974911292 0.095696526

Discussion:

 Color is statistically insignificant as its P-value is more than 0.05, but it has positive
correlation with price if any increase comes in color will bring 6660 rupees in Price of the
Mobile.
 Battery mAH has also insignificant relationship with dependent variable. Based on
coefficient value it has negative correlation, if we increase mAh by any number, will
decrease the price by 38 rupees.
 Ram GB has strongly significant relationship with dependent variable. Coefficient value
shows that it has positive correlation with price if any increase we bring in Ram it will
increase price of the mobile by 22710 Rupees.
 Memory is statistically insignificant and coefficient value shows direct relation with price,
if we increase built-in memory by any range, it will increase the price by 287 rupees.
 Back Camera Megapixel is almost significant because the p-value is a bit more its alpha
value. The coefficient value tells us that if we bring any increase in megapixel, it will
increase price of the mobile by 640 rupees.
  Android OS is also statistically significant. There is positive of this with price, if we
further better OS, it will increase the price by 655 rupees.
 Rating is statistically insignificant, based on coefficient value it has direct relationship, if
we people further rate this model with good rating as a result its price will boost by 41283
rupees.
 Display Size is also insignificant but it has positive correlation with price, if we increase
display size further, it will increase the price by 54120 rupees.

Merged Brands’ Data Analysis:

Table 7 Merged Brands R Square

Regression Statistics
Multiple R 0.953346382
R Square 0.908869323
Adjusted R Square 0.880829115
Standard Error 22097.09181
Observations 35

Table 7
The above table shows R Square and Adjusted R Square for both Brands’ Merged Data. The
Adjusted R Square value is 88%, which means that the explanatory variables cause 88% variation
in dependent variable.

Table 8 ANOVA for Merged Data

Description df SS MS F Significance F
Regression 8 1.26614E+11 15826702974 32.41307333 0.000000000013
Residual 26 12695318126 488281466.4
Total 34 1.39309E+11

Table 8
The above table shows the model significance, the model is strongly significant based on F statistics value
which very less than 0.05. So we can say that the model is best fit.
 Table 9 Merged Data Regression Analysis
Description Coefficients Standard Error t Stat P-value
Intercept -134512.8022 35082.8747 -3.834144247 0.000719454
Model -102097.0692 11118.70899 -9.182457183 1.21409E-09
Color_2 3677.65923 5357.776996 0.686415137 0.498527776
Battery mAh 12.96616281 11.48798446 1.128671688 0.269343435
Ram GB 24010.8356 4635.954978 5.179264189 2.09512E-05
Memory Built-in 118.9575361 201.2573374 0.591071797 0.559576277
Back Camera one -2682.71809 770.8351183 -3.480274868 0.001783312
Operating System 522.6892299 236.2513049 2.212428964 0.035925301
DisplaySize 28510.33888 10583.8525 2.693758146 0.012207248

Discussion:

 Models have statistically significant relationship with Price of the Brands as its P-value is
much lesser than 0.05. I took this variable as Categorical variable, I gave “O” code to
iPhone Brand and “1” Code to Samsung Brand. Here the coefficient value shows the
differences, if it is 0, the intercept value will be deemed for iPhone brand which means
that the price will be lower compared to another by -134512. If we explain it for 1 which
is Samsung mobile which we will subtract from intercept value so it gives us value of
-236609. These values commonly mean that iPhone brand will have higher price
compared to samsung.
 Color has statistically insignificant effect over price of the brands, but the coefficient value
shows direct relationship with price which means if we add more colors in brands, will
increase prices of the brands by 3677 Rupees.
 Battery mAH is statistically insignificant but it has positive relationship with price of the
mobiles, if we increase battery mAH by any level it will increase the price of the phones
by 12 rupees.
 Ram GB has significant effect on prices and coefficient value shows if we increase ram it
will increase price by 24010.
 Display size has insignificant effect and it has direct relationship with dependent variable,
if we further increase display size it will increase the prices of the brands by 28510 rupees.