COVER PAGE
GROUP ASSIGNMENT
DATA: AUTO SURVEY
WORD COUNT: 2500-3000
REPORT: 30%
Executive Summary
Auto Sales & Parts
Problem
Panda Motor Berhad will fill a void in the Malaysian market by offering a wide variety of
high-quality second-hand cars at affordable prices. Both the owner and the sales
manager have worked in the automotive industry for over 30 years. Our outstanding
working relationship with local dealers and auctions will continue to grow so that we can
pass the savings on to you.
Solution
We're going to make it such that shoppers are in an atmosphere where their needs are
prioritised. We promise a pleasant car-buying experience and a high level of
professionalism that will have consumers coming back and recommending us to their
friends and family. We expect a healthy gross margin, well above the norm for this
market. The proprietors are extremely driven, and they, along with the talented staff
they've established, guarantee our company's success.
Market
Nowadays, having a car is a necessity for getting from A to B. Nowaday's commonplace
two-car family is commonplace. Recently, the new automobile market has been
booming, and as a result, there is a big supply of used cars on the market. In October,
sales of brand-new automobiles jumped by a whopping 24 percent, marking their
highest monthly increase ever.
Competition
Unscrupulous used automobile sales tactics have earned the industry a bad reputation.
Due to this, consumers are wary and hesitant to trust businesses. Our success depends
on our ability to provide a first-rate purchasing experience. The customer may expect
helpful and kind service from our sales staff. When a consumer expresses
dissatisfaction, we will follow up with them. To reassure other people in their decision to
purchase a car, we will rely on these clients' glowing recommendations. There will be a
significant improvement in the company's interaction with its vendors and clients.
Why Us?
Customers in the Willamette Valley should expect something special from Integrity Auto
Sales. Specifically, one that prioritises the happiness of its clients. We recognise that
buying a car may be a stressful and time-consuming endeavour. We strive to meet each
customer's practical transportation demands with a high-quality product while also
providing friendly, trustworthy service.
Furthermore, we think it's crucial to provide reasonably priced, high-quality vehicles, so
we're backing each one with a 30-day limited guarantee. By increasing revenue, Panda
Motor Berhad will turn a profit. It will offer competitive pay and benefits to its workers
while yet providing a reasonable return to its shareholders. Bonuses and commissions
are paid out to employees based on their performance and how much they achieve.
Workers' and owners' happiness on the job is of paramount importance, thus we'll strive
to make the company a place where they may thrive while doing what they love.
Table of Contents
Executive Summary.........................................................................................................2
Introduction......................................................................................................................5
The main body of the report...........................................................................................6
Recommendation...........................................................................................................13
Conclusion.....................................................................................................................15
Reference list.................................................................................................................16
Appendices.....................................................................................................................18
Introduction
More than 9 million cars are now legally owned by Malaysians. We have a ratio of 3.3
people per car. By far the highest percentage of ownership in ASEAN. Since Malaysia's
home market is already rather sizable and developed, quick expansion of that sector is
unrealistic. As a result, there is widespread recognition of the importance of exporting
both finished automobiles and their parts and components. The NAP indicated that
expanding into new international markets should be a top priority for the automotive
industry as a whole, including suppliers of both vehicles and parts.
The vast majority of vehicles sold in Malaysia's auto sector are personal automobiles. In
most other ASEAN countries, commercial cars make up a sizable portion of the market.
Around the past 30 years, passenger automobile production has skyrocketed from
roughly 100,000 units to over 500,000 to 600,000. While passenger car manufacturing
peaked in 2005, commercial vehicle output remained consistently low, at around
140,000 units. Since 2007, output has remained steady at roughly 50,000 units per
year..
There are 33 manufacturers of passenger cars and 45 manufacturers of commercial
vehicles, as of the most recent manufacturing census in 2021. Valued at
RM29,651,000,000, passenger automobiles' production is far more lucrative than
commercial vehicles' at only RM2,156,000,000. 4 There are a grand total of 28,585
workers on staff. There are 525 manufacturers of automobile components, responsible
for the income of RM21,339 million and the employment of 49,677 people. In total,
RM1,306,000,000 was generated by 4,654 people at 139 companies manufacturing
vehicle bodies.
The aforementioned three industries provide RM 54,456,000,000 to Malaysia's
economy, or 4.8% of the country's total industrial output. Compared to the
manufacturing of electronics (28.2%), oil products (26.2%), and food (17.5%), this
number is substantially lower. Even less of a percentage of all manufacturing jobs in
Malaysia are in this sector (3.9%)..
The main body of the report
Panda Motor Berhad collects another set of data that contains the following information.
Based on the data, the CEO instructs the company's analyst team to do the following:
1. Construct cross-tabulations of gender versus car type and purchase.
2. Illustrate the results (charts)
3. Explain the findings
4. Develop a two-tailed hypothesis where km/liter is the dependent variable, mileage and
vehicle age as the independent variable
5. Test the hypothesis by using Anova, critical-value, and p-value approach. Explain the
findings.
6. Find the best regression model to predict km/liter as a function of vehicle age and
mileage
7. Based on the analysis in Q1-Q3, recommend one strategy for Panda Motor Berhad.
Table 1 Auto Survey
Mileag
Gender Type Purchased Vehicle Age e Km/liter
Male Mid-size Used 15 127233 28.7
Female Mid-size New 1 23970 43.4
Male Small New 7 77392 24
Female Large SUV Used 14 185397 15.2
Female Small New 2 26001 37
Female Minivan New 9 180643 20
Male Small Used 6 72083 45.7
Male Small New 11 165353 42
Male Small Used 13 205288 33
Female Small New 7 142897 31
Male Minivan Used 14 182584 12
Male Small SUV Used 13 140479 20
Female Small New 2 22114 28
Female Mid-size New 0.25 3454 28.3
Female Large SUV New 7 130905 21
Female Small Used 10 105628 35
Female Small New 5 48678 30.4
Male Mid-size New 0.5 6849 40.2
Female Small Used 10 137941 30
Female Small SUV New 4 29823 24.9
Male Small SUV Used 14 85763 21
Female Small Used 12 134172 31
Male Mid-size Used 12 86387 27
Panda Motor Berhad collects another set of data that contains the following information.
Based on the data, the CEO instructs the company's analyst team to do the following:
1. Construct cross-tabulations of gender versus car type and purchase.
Purchase
Gender d Type Total
Female New Large SUV 1
Mid-size 2
Minivan 1
Small 4
Small SUV 1
New Total 9
Used Large SUV 1
Small 3
Used
Total 4
Female Total 13
Male New Mid-size 1
Small 2
New Total 3
Used Mid-size 2
Minivan 1
Small 2
Small SUV 2
Used
Total 7
Male Total 10
Grand Total 23
2. Illustrate the results (charts)
Gender versus car type and purchase
5
2 Total
0
Minivan
Minivan
Mid-size
Mid-size
Mid-size
Large SUV
Small SUV
Large SUV
Small SUV
Small
Small
Small
Small
New Used New Used
Female Male
3. Explain the findings
From the table above, we summarize that the total for female customers purchase are
13 cars and male customers are 10 cars. List of female customers purchased new car
are 1 Large SUV, 2 Mid-size, 1 Minivan, 4 Small car and 1 Small SUV. While male
customers purchased new car are 1 Mid-size and 2 Small cars only. After that, used
purchased car by female customers are 1 Large SUV and 3 Small car. While the
amount for male customer purchased used car are more than the female customer
which are 2 Mid-size, 1 Minivan, 2 Small car and 2 Small SUV. We can conclude that
female customers purchased more on new cars (9 cars) while male customers
purchased more on used cars (7 cars).
4. Develop a two-tailed hypothesis where km/liter is the dependent variable, mileage and
vehicle age as the independent variable
H0 µMileage = µVehicle Age There is no relationship between mileage
=0 and vehicle age
H1 µMileage ≠ µVehicle Age ≠ There is a relationship between mileage and
0 vehicle age
5. Test the hypothesis by using Anova, critical-value, and p-value approach. Explain the
findings.
CRITICAL VALUE
µMileage = µVehicle
STEP 1 H0 Age = 0
µMileage ≠ µVehicle Age
H1 ≠0
STEP 2 Data Analysis --> ANOVA: Single Factor
STEP 3 Select input range
Check labels in first row
Alpha 0.05
STEP 4 Get the result/Output
STEP 5 Decision Rule
F-test lies under unshaded area.
Reject H0.
STEP 6 Conclusion
There is no sufficient evidence that the return for all counter is relatively equal.
p-VALUE
STEP 1 H0
H1
STEP 2 Data Analysis --> ANOVA: Single Factor
STEP 3 Select input range
Check labels in first row
Alpha 0.05
STEP 4 Get the result/Output
STEP 5 Decision Rule
1.34 > 0.05
REJECT H0
STEP 6 Conclusion
There is no sufficient evidence that the return for all counter is relatively equal.
Anova: Single
Factor
SUMMARY
Groups Count Sum Average Variance
Mileage 23 2321034 100914.52 4.015E+09
Vehicle Age 23 188.75 8.2065217 23.878706
ANOVA
Source of Variation SS df MS F P-value F crit
1.171E+1 1.171E+1
Between Groups 1 1 1 58.33096 1.345E-09 4.0617065
8.833E+1 2.007E+0
Within Groups 0 44 9
2.054E+1
Total 1 45
Reject H0 Reject H0
F-test 58.33
Critical t - Critical t
4.062 4.062
6. Find the best regression model to predict km/liter as a function of vehicle age and
mileage.
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.47167786
R Square 0.22248
Adjusted R
Square 0.144728
Standard
Error 8.18751537
Observations 23
ANOVA
Significanc
df SS MS F eF
Regression 2 383.631 191.815 2.86141 0.08075
Residual 20 1340.71 67.0354
Total 22 1724.34
Coefficient Standar Upper Lower Upper
s d Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept 36.1809047 3.45284 10.4786 1.4E-09 28.9784 43.3834 28.9784 43.3834
-
Vehicle Age -0.766406 0.63058 -1.2154 0.23837 -2.08177 0.54896 2.08177 0.54896
- -
Mileage -8.057E-06 4.9E-05 0.16569 0.87007 -0.00011 9.3E-05 0.00011 9.3E-05
Recommendation
About 20% of men will go car shopping with a firm idea of what they want.
Specifications such as engine size, transmission, drivetrain, and suspension settings
are typically included. More than half of male drivers report feeling confident while
shopping for a new automobile, and most make their purchase decision in 63 days or
fewer.
Men, faced with a bewildering array of automobile options, typically choose European
luxury brands like Jaguar, Ferrari, Porsche, and BMW, and look for vehicles that include
cutting-edge amenities and a sleek design inside and out.
Women are twice as likely to be indecisive as men, even though they have a better
notion of the qualities they want in a new car. Among automobile shoppers, only 38% of
women say they feel comfortable making a purchase.
When compared to males, women take about 75 days to make a final decision on a new
car since they are more deliberate shoppers.
Women, in contrast to males, are more likely to choose non-luxury brands and to be
driven to choose automobiles that are inexpensive and well-known for their
dependability, safety, and durability. Women tend to favour more practical makes like
Kia, Honda, and Nissan. One theory offers that this is because women typically have a
more pragmatic outlook on life.
One way to obtain a better deal on the car you want is to be confident in your choice.
Car salespeople are savvy enough to know when they're dealing with a nervous
customer and may take advantage of that fact in order to increase their profit margin.
Salespeople typically give women $200 more than the stated price, whereas males
typically negotiate cheaper costs.
Less males than women are out and about today. Female drivers outnumber male
drivers by around 1.4 million. In addition, 62% of all new cars sold in the United States
are bought by women, while only 38% are bought by men. Moreover, women make up
over 80% of all car-buying decision makers.
One website estimate that men could spend up to $15,000 more over the course of their
lives on auto insurance than women. The rates are lower for older drivers, but they
remain significantly higher for male drivers under the age of 35. Male and female drivers
in their mid-thirties face equal rates.
This is because, according to the data, male drivers are more inclined to jeopardise
their lives. Luxury vehicles, which are more popular among men, have insurance
premiums that are significantly higher than those of non-luxury vehicles.
Almost every age group, except for one millennial, can identify with these numbers. As
an example, Millennial women are just as confident as males when it comes to making
a large purchase like buying a car, and Millennial men are more confident than their
fathers' generation were in their female colleagues.
Millennial men think that women are better at haggling than they are and are also more
rational shoppers than they are. Both men and women may find it challenging to shop
for a car, but they go about it in quite different ways.
Many people's first major purchase in adulthood is an automobile. Fuel economy and
safety features rank highest on consumers' wish lists worldwide, according to Statista's
Global Consumer Survey (switching places since 2018). These two factors, at 56 and
55 percent, considerably outweigh a low price, with only 46 percent saying this was a
major priority when shopping around.
Even aesthetics isn’t as crucial as the old TV commercial would have us believe. A
relatively small percentage (32%) of new automobile buyers are fixated on how their
vehicle looks. When asked what they look for in a car, 43% of respondents said high
quality, with driving comfort coming in at a close second.
Conclusion
Due to the complexity of the decision-making process, automobile shopping can be both
a thrilling and overwhelming experience. Quality, dependability, and total cost of
ownership are other considerations beyond pricing.
A car's quality is measured by how long it lasts and how well it was built. Rust, paint
flaking, engine trouble, and other common maintenance difficulties are less common in
higher quality vehicles. To a modern car's quality, add in high-tech features like
Bluetooth, adaptive cruise control, satellite radio, and a slew of others. If you want to
know if an automobile is worth buying, one of the most important things to look at is its
quality.
Quality and dependability are synonymous with car ownership. In most cases, a
vehicle's dependability is based on its quality, or how well it serves its intended purpose
(how well an object maintains its original level of quality over time through various
conditions). It's crucial to check reliability ratings when looking for a new or pre-owned
car. About half a million vehicle owners are polled annually by Consumer Reports to
identify which vehicles have the most consistent dependability difficulties.
There are additional expenses associated with vehicle ownership that aren't included in
the sticker price. All costs associated with owning and operating a vehicle are included
here. Before going automobile shopping, it's crucial to consider how much money you
can realistically put into vehicle ownership.
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Appendices (including plagiarism report)
