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Investigation of the Factors That Influence the Price of Cars in the USA

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Linear-Regression-

Investigation of the Factors That Influence the Price of Cars in the USA There has been continuous increase in competition in the automotive market. Thus, manufacturing companies need to identify features that can withstand the increasing competition, especially in the US automotive market. In fact, effective pricing strategy using appropriate car features can help an emerging automotive manufacturing company gain a competitive advantage over the rivals. This paper aimed to investigate the essential features for a car manufacturing company to withstand the competitiveness in the automotive industry in the US. The study employed a quantitative research methodology, where multiple linear regression model was used. The data were analyzed using the Rstudio software, where descriptive statistics and visualization was done using appropriate R packages. The results revealed that the best features to consider when starting an automotive industry in the US include city mpg, horsepower, fuel system, engine size, cylinder number, fuel type, and wheel drive. In particular, this study revealed cars with mpfi fuel system, five and twelve cylinders, rear-wheel drive, and gas fuel type are expected to yield more profit in the US automotive industry.

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Investigation of the Factors That Influence the Price of Cars in the USA

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