AUTOMOBILE

DATA
ANALYSIS

Name
PGP-DSBA Online
January’ 21
Date: dd/mm/yyyy

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Table of Contents

Contents
Executive Summary................................................................................................................................. 3
Introduction ............................................................................................................................................ 3
Data Description ..................................................................................................................................... 3
Sample of the dataset: ........................................................................................................................ 3
Exploratory Data Analysis ....................................................................................................................... 4
Let us check the types of variables in the data frame. ....................................................................... 4
Check for missing values in the dataset:............................................................................................. 4
Correlation Plot ................................................................................................................................... 5
Pairplot ................................................................................................................................................ 5
Q1: Use methods of descriptive statistics to summarize data. Find out the costliest car and the
cheapest car by average price. ............................................................................................................... 6
Q2: Which fuel type car has the highest average price? ........................................................................ 8
Q3: For this data, construct the following contingency table (Keep make as row variable) .................. 8
Q4: Assume that the sample is a representative of the population of the cars available at showroom.
Based on the data, answer the following questions:.............................................................................. 9
a. What is the probability that a randomly selected car will be Honda? ....................................... 9
b. What is the probability that a randomly selected car will be toyota?........................................ 9
Q5: Form the null and alternate hypothesis to test whether the Price of gas cars is significantly
different from that of diesel cars ............................................................................................................ 9
Q6: Conduct the test of hypothesis and find the p-value. Interpret the p-value. Is there evidence at
the 0.05 level of significance that average price of gas cars is significantly different from that of
diesel cars? .............................................................................................................................................. 9
T-Test ................................................................................................................................................ 10
Conclusion & Recommendation ........................................................................................................... 10
THE END! ............................................................................................................................................... 10

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List of Figures
Fig.1 – Correlation Heatmap………………………………………………………………………………………………………………………5
Fig.2 – Pairplot…………………………………………………………………………………………………………………………………………..6
Fig.3 – Make vs Avg. Price bar plot…………………………………………………………………………………………………………….7
Fig.4 – Fuel Type Vs Avg. Price bar plot………………………………………………………………………...…………………………..8

List of Tables
Table 1. Dataset Sample…………………………………………………………………………………………………….………………………3
Table 2. Summary of the data ………………………………………………………………………………………………………………..6-7
Table 3. Avg. Price by make of the car ………………………………………………………………………………………..…………….7
Table 4. Contingency Table: Make vs Body-style ………………………………………………………………………….…………..8

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Executive Summary
A showroom owner deals with different types/models of cars. The dataset consists of various
characteristics of the cars based on the models available in the showroom. Based on the different
attributes/characteristics the price of the car is defined. In this problem statement we will explore the
different attributes of the car and its contribution to the price of the car.

Introduction
The purpose of this whole exercise is to explore the dataset. Do the exploratory data analysis. Explore
the dataset using central tendency and other parameters. The data consists of 127 different cars with
8 unique brands of car. Analyse the different attributes of the car make which can help in analysing
the price of the car. This assignment should help the student in exploring the summary statistics,
contingency tables, conditional probabilities & hypothesis testing.

Data Description
1. make: brand of the car (for example: honda, mazda, mitsubishi, Nissan etc.)
2. fuel-type: type of the fuel used in the car (diesel, gas)
3. aspiration: std, turbo.
4. num-of-doors: four, two.
5. body-style: hardtop, wagon, sedan, hatchback, convertible.
6. drive-wheels: 4wd, fwd, rwd.
7. engine-location: front, rear.
8. num-of-cylinders: eight, five, four, six, three, twelve, two.
9. wheel-base: continuous from 86.6 120.9.
10. length: continuous from 141.1 to 208.1.
11. width: continuous from 60.3 to 72.3.
12. height: continuous from 47.8 to 59.8.
13. curb-weight: continuous from 1488 to 4066.
14. engine-size: continuous from 61 to 326.
15. horsepower: continuous from 48 to 288.
16. city-mpg: continuous from 13 to 49.
17. highway-mpg: continuous from 16 to 54.
18. price: continuous from 5118 to 45400.

Sample of the dataset:

Table 1. Dataset Sample

Dataset has 18 variables with 8 different types of the car make. Each car make has different sets of
attributes. Based on the characteristic price of the car is defined.

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Exploratory Data Analysis

Let us check the types of variables in the data frame.

make object
fuel-type object
aspiration object
num-of-doors object
body-style object
drive-wheels object
engine-location object
num-of-cylinders object
wheel-base float64
length float64
width float64
height float64
curb-weight int64
engine-size int64
horsepower int64
city-mpg int64
highway-mpg int64
price int64
dtype: object

There are total 127 rows and 18 columns in the dataset. Out of 18, 8 columns are of object type and rest
10 are of either integer or float data type.

Check for missing values in the dataset:

RangeIndex: 127 entries, 0 to 126

Data columns (total 18 columns):
make 127 non-null object
fuel-type 127 non-null object
aspiration 127 non-null object
num-of-doors 127 non-null object
body-style 127 non-null object
drive-wheels 127 non-null object
engine-location 127 non-null object
num-of-cylinders 127 non-null object
wheel-base 127 non-null float64
length 127 non-null float64
width 127 non-null float64
height 127 non-null float64
curb-weight 127 non-null int64
engine-size 127 non-null int64
horsepower 127 non-null int64
city-mpg 127 non-null int64
highway-mpg 127 non-null int64
price 127 non-null int64

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From the above results we can see that there is no missing value present in the dataset.

Correlation Plot

Fig.1 – Correlation Heatmap

From the correlation plot, we can see that various attributes of the car are highly correlated to each
other. Correlation values near to 1 or -1 are highly positively correlated and highly negatively
correlated respectively. Correlation values near to 0 are not correlated to each other.

Pairplot
Pairplot shows the relationship between the variables in the form of scatterplot and the distribution
of the variable in the form of histogram.

From the graph, we can see that there is positive linear relationship between variables like highway-
mpg and city-mpg. From the histogram we can see that the price of the whole dataset is right skewed.

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 Fig.2 – Pairplot

Q1: Use methods of descriptive statistics to summarize data. Find out

the costliest car and the cheapest car by average price.
Descriptive statistics help describe and understand the features of a specific data set by giving short
summaries about the sample and measures of the data. The most recognized types of descriptive
statistics are measures of centre: the mean, median, and mode, which are used at almost all levels
of math and statistics.
count unique top freq mean std min 25% 50% 75% max
make 127 8 toyota 32 NaN NaN NaN NaN NaN NaN NaN
fuel-type 127 2 gas 117 NaN NaN NaN NaN NaN NaN NaN
aspiration 127 2 std 110 NaN NaN NaN NaN NaN NaN NaN
num-of-doors 127 2 four 71 NaN NaN NaN NaN NaN NaN NaN
body-style 127 5 sedan 56 NaN NaN NaN NaN NaN NaN NaN
drive-wheels 127 3 fwd 86 NaN NaN NaN NaN NaN NaN NaN

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 engine-location 127 1 front 127 NaN NaN NaN NaN NaN NaN NaN
num-of-cylinders 127 4 four 110 NaN NaN NaN NaN NaN NaN NaN
wheel-base 127 NaN NaN NaN 97.4441 4.17486 86.6 94.5 96.5 98.8 109.1
length 127 NaN NaN NaN 171.287 9.65843 144.6 166.3 171.7 176.2 188.8
width 127 NaN NaN NaN 65.3756 1.40202 62.5 64 65.4 66.5 68.9
height 127 NaN NaN NaN 53.6457 2.13804 49.4 52.5 54.1 55.1 59.1
curb-weight 127 NaN NaN NaN 2405.47 388.094 1713 2114.5 2326 2614.5 3296
engine-size 127 NaN NaN NaN 115.74 26.4249 70 97 109 130 181
horsepower 127 NaN NaN NaN 94.622 30.8177 52 69 86 114 200
city-mpg 127 NaN NaN NaN 26.5984 5.84626 16 23.5 26 31 49
highway-mpg 127 NaN NaN NaN 32.1654 6.18724 22 28 32 37 54
price 127 NaN NaN NaN 10415.5 4040.54 5118 7481 9233 12459.5 22625
Table 2. Summary of the data

From the descriptive statistics, we can see that there are 8 unique types of make (car) available in the
dataset. Toyota is the most frequent car type. Average length of the car is 171.287 with the average
width of 65.37. The average price of the overall dataset is 10415 dollars. The range of the price of the
car varies from 5118 to 22625. That means the price is spread over a big range.

NaN shows that the values cannot be calculated for that particular variables. Like we can calculate
mean for a categorical/object type variable. And in a same way unique value for a numerical variable.

Calculating the average price of the car based on the make.

make avg_price
0 honda 8184.692308
1 subaru 8541.250000
2 mitsubishi 9239.769231
3 toyota 9885.812500
4 volkswagen 10077.500000
5 nissan 10415.666667
6 mazda 10644.000000
7 volvo 18063.181818
Table 3. Avg. Price by make of the car

Fig.3 – Make vs Avg. Price bar plot

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 After calculating the average price of the car based on different make, we found that Volvo is the
costliest car type and honda is the cheapest car.

Q2: Which fuel type car has the highest average price?

Fig.4 – Fuel Type Vs Avg. Price bar plot

We will calculate the average price of the car based on the fuel-type and plot the graph. From the
above plot, we can see that car with diesel fuel-type has the highest average price.

Q3: For this data, construct the following contingency table (Keep
make as row variable)
Contingency Table: A table showing the distribution of one variable in rows and another in columns,
used to study the correlation between the two variables.

a. Make and body-style

body-style convertible hardtop hatchback sedan wagon

make
honda 0 0 7 5 1
mazda 0 0 10 6 0
mitsubishi 0 0 9 4 0
nissan 0 1 5 9 3
subaru 0 0 3 5 4
toyota 1 3 14 10 4
volkswagen 1 0 1 9 1
volvo 0 0 0 8 3
Table 4. Contingency Table: Make vs Body-style

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Q4: Assume that the sample is a representative of the population of
the cars available at showroom. Based on the data, answer the
following questions:
a. What is the probability that a randomly selected car will be Honda?

Honda car Probability = (Total number of Honda cars)/ (Total number of cars at
showroom).
Prob_honda = 13/127 = 0.102362

b. What is the probability that a randomly selected car will be toyota?

Toyota car Probability = (Total number of Toyota cars)/ (Total number of cars at
showroom).
Prob_toyota = 32/127 = 0.251969

Q5: Form the null and alternate hypothesis to test whether the Price
of gas cars is significantly different from that of diesel cars

A null hypothesis is a hypothesis that says there is no statistical significance between the two
variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove.

An alternative hypothesis simply is the inverse, or opposite, of the null hypothesis.

In testing the company would like to show that the average price of gas cars is significantly different from
that of diesel cars

Null hypothesis: states that the difference in average Price of gas cars & diesel cars is 0

Alternative hypothesis: states that the difference in average Price of gas cars & diesel cars is not equal 0
at 95% confidence.

𝐻0: 𝜇 (gas) - 𝜇 (diesel) = 0

𝐻𝐴: 𝜇 (gas) - 𝜇 (diesel)! = 0

Q6: Conduct the test of hypothesis and find the p-value. Interpret the
p-value. Is there evidence at the 0.05 level of significance that
average price of gas cars is significantly different from that of diesel
cars?
The difference in means between two Normal distributions with unknown variance follows a Student’s
t-distribution. The t-test is any statistical hypothesis test in which the test statistic follows a Student's
t-distribution under the null hypothesis. The Student t-test is one of the oldest and widely used
hypothesis test.

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We don't know the variance of the population. A common strategy to assess hypothesis is to conduct
a t test. A t test can tell whether two groups have the same mean. A t test can be estimated for:

1) One sample t test

2) Two sample t test (including paired t test)

We assume that the samples are randomly selected, independent and come from a normally
distributed population with unknown but equal variances.

T-Test
Now we will perform the t-test on the log-transformed data to prove the hypothesis.

First decide the level of significance:

The level of significance is defined as the probability of rejecting a null hypothesis by the test when it
is really true, which is denoted as α. That is, P (Type I error) = α. Confidence level: The level of
significance 0.05 is related to the 95% confidence level.

Level of Significance α = 0.05

From the two sample t- test performed, we got the below results:
Two sample t test

t statistic: 0.58 p value: 0.574

At the level of 5% significance, p-value = 0.57. Since p-value > 0.05, that means the difference in
average Price of gas cars & diesel cars is 0 at the 5% level of significance

We have no evidence to reject the null hypothesis since p value > Level of significance

Conclusion & Recommendation

From the data exploration, we can suggest/recommend below suggestions to the car makers:

1. There is skewness in car type availability the terms of fuel type. Many of the brands have only
one type of car. The brand companies could try different cars of different types.
2. There is not much difference in the average price of diesel car and gas fuel-type car which
again can suggest the makers to explore the car modification with cost effective price based
on the fuel-type.
3. Apart from these attributes, there are latest features which could help in attracting
customers. So, the companies/manufactures could explore those features as well.

THE END!

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