Cadillacs Lagging Sales Analysis - Report Example

IT Project: Cadillacs Lagging Sales Mohamed Omran Qatar Business Statistics FALL College of Business and Economics IT Project: Cadillacs Lagging Sales Introduction Cadillac was the top-selling luxury car in North America from 1950 to 1998. In 2000, Cadillac’s sales ($700 million) sank to sixth (half that of 1978, Cadillacs peak year), behind Lexus, BMW, and Mercedes. Cadillac appeals mainly to older males and younger people seeking luxury car shop elsewhere. Therefore, if the company does not pick up sales among younger shoppers, profits will go the way of fins. To put Cadillac back on top, it is necessary to understand who is buying. Therefore, a survey of luxury car buyers was undertaken and information was gathered from random samples of the recent buyers of BMW, Cadillac, Lexus, Lincoln and Mercedes-Benz for the ages of the owners, their household incomes and their years of education. This report will use graphical and numerical techniques to describe the ages, household incomes, and education of the five groups of car buyers. Results and Discussions Age Table 1 shows the summary statistics for the ages (in years) of the owners of the five luxury cars. The average age of the owners of the BMW car is 45.28 years (SD = 4.73). About half of the BMW car buyer’s age is below 45 years. The range of the BMW car buyer’s age is 21 years with minimum and maximum buyer’s age being 36 years and 57 years, respectively. The middle half of the BMW car buyer’s age is in-between 42 years and 48 years. The BMW car buyer’s age is slightly positively skewed. Table 1: Summary statistics for the ages (in years) of the owners of the five luxury cars (n = 50)   BMW Cadillac Lexus Lincoln Mercedes Mean 45.28 61.00 50.96 59.50 52.24 Median 45 61 51 60 52 Mode 46 62 55 60 53 Standard Deviation 4.73 3.76 6.21 4.63 7.92 Kurtosis -0.13 -0.97 0.72 -1.14 1.85 Skewness 0.53 0.10 0.42 -0.04 0.73 Range 21 14 32 16 42 Minimum 36 55 36 51 35 Maximum 57 69 68 67 77 Lower Quartile, Q1 42 58 47 55.25 47.25 Upper Quartile, Q3 48 64 55 64 56.5 The average age of the owners of the Cadillac car is 61 years (SD = 3.76). About half of the Cadillac car buyer’s age is above 61 years. The range of the Cadillac car buyer’s age is 14 years with minimum and maximum buyer’s age being 55 years and 69 years, respectively. The middle half of the Cadillac car buyer’s age is in-between 58 years and 64 years. The Cadillac car buyer’s age is normally distributed. The average age of the owners of the Lexus car is 50.96 years (SD = 6.21). About half of the Lexus car buyer’s age is below 51 years. The range of the Lexus car buyer’s age is 32 years with minimum and maximum buyer’s age being 36 years and 68 years, respectively. The middle half of the Lexus car buyer’s age is in-between 47 years and 55 years. The Lexus car buyer’s age is slightly positively skewed. The average age of the owners of the Lincoln car is 59.5 years (SD = 4.63). About half of the Lincoln car buyer’s age is above 60 years. The range of the Lincoln car buyer’s age is 16 years with minimum and maximum buyer’s age being 51 years and 67 years, respectively. The middle half of the Lincoln car buyer’s age is in-between 55.25 years and 64 years. The Lincoln car buyer’s age is normally distributed. The average age of the owners of the Mercedes car is 52.24 years (SD = 7.92). About half of the Mercedes car buyer’s age is below 52 years. The range of the Mercedes car buyer’s age is 42 years with minimum and maximum buyer’s age being 35 years and 77 years, respectively. The middle half of the Mercedes car buyer’s age is in-between 47.25 years and 56.5 years. The Mercedes car buyer’s age is positively skewed. Figure 1 shows the Boxplots comparing distribution for the ages of the owners of the five luxury cars indicating that the age of the owners of the Cadillac car is higher and less variable as compared to the age of the owners of other luxury cars. Figure 1: Boxplots comparing distribution for the ages of the owners of the five luxury cars Figure 2 shows the mean plot for the ages of the owners of the five luxury cars indicating that the average buyer’s age for the Cadillac car is higher as compared to the average buyer’s age of the owners of other luxury cars. Figure 2: Mean plot for the ages of the owners of the five luxury cars Household Income Table 2 shows the summary statistics for the household incomes (salaries) of the owners of the five luxury cars. The average household income of the owners of the BMW car is about $136,634 (SD = $32,538). About half of the BMW car buyer’s household income is above $138,391. The range of the BMW car buyer’s household income is $157,238 with minimum and maximum buyer’s household income being $46,068 and 203,306, respectively. The middle half of the BMW car buyer’s household income is in-between $109,982 and $159,068. The BMW car buyer’s household income is normally distributed. Table 2: Summary statistics for the salaries (in $) of the owners of the five luxury cars (n = 50)   BMW Cadillac Lexus Lincoln Mercedes Mean 136,634 108,096 156,135 111,972 182,387 Median 138,391 107,017 152,924 110,639 178,711 Standard Deviation 32,538 15,437 32,397 21,929 41,934 Kurtosis -0.17 -0.67 0.88 0.08 0.07 Skewness -0.19 -0.11 0.82 -0.31 0.43 Range 157,238 62,581 149,761 103,282 206,908 Minimum 46,068 75,358 98,373 54,622 86,431 Maximum 203,306 137,939 248,134 157,904 293,339 Lower Quartile, Q1 109,982 100,038 129,929 96,500 154,069 Upper Quartile, Q3 159,068 121,846 172,257 129,645 204,940 The average household income of the owners of the Cadillac car is about $108,096 (SD = $15,437). About half of the Cadillac car buyer’s household income is below $107,017. The range of the Cadillac car buyer’s household income is $62,581 with minimum and maximum buyer’s household income being $75,358 and 137,939, respectively. The middle half of the Cadillac car buyer’s household income is in-between $100,038 and $121,846. The Cadillac car buyer’s household income is normally distributed. The average household income of the owners of the Lexus car is about $156,135 (SD = $32,397). About half of the Lexus car buyer’s household income is above $152,924. The range of the Lexus car buyer’s household income is $149,761 with minimum and maximum buyer’s household income being $98,373 and 248,134, respectively. The middle half of the Lexus car buyer’s household income is in-between $129,929 and $172,257. The Lexus car buyer’s household income is positively skewed. The average household income of the owners of the Lincoln car is about $111,972 (SD = $21,929). About half of the Lincoln car buyer’s household income is below $110,639. The range of the Lincoln car buyer’s household income is $103,282 with minimum and maximum buyer’s household income being $54,622 and 157,904, respectively. The middle half of the Lincoln car buyer’s household income is in-between $96,500 and $129,645. The Lincoln car buyer’s household income is slightly negatively skewed. The average household income of the owners of the Mercedes car is about $182,387 (SD = $41,934). About half of the Mercedes car buyer’s household income is above $178,711. The range of the Mercedes car buyer’s household income is $206,908 with minimum and maximum buyer’s household income being $86,431 and 293,339, respectively. The middle half of the Mercedes car buyer’s household income is in-between $154,069 and $204,940. The Mercedes car buyer’s household income is slightly positively skewed. Figure 3 shows the Boxplots comparing distribution for the household incomes of the owners of the five luxury cars indicating that the household income of the owners of the Cadillac car is lower and less variable as compared to the household income of the owners of other luxury cars. Figure 4 shows the mean plot for the household incomes of the owners of the five luxury cars indicating that the average buyer’s household income for the Cadillac car is lower as compared to the average buyer’s household income of the owners of other luxury cars. Figure 3: Boxplots comparing distribution for the salaries of the owners of the five luxury cars Figure 4: Mean plot for the salaries of the owners of the five luxury cars Years of Education Table 3 shows the summary statistics for the years of education of the owners of the five luxury cars. Table 3: Summary statistics for the years of education of the owners of the five luxury cars (n = 50)   BMW Cadillac Lexus Lincoln Mercedes Mean 15.92 12.86 15.98 13.22 17.2 Median 16 13 16 13 17 Mode 16 13 17 13 17 Standard Deviation 1.83 1.58 2.46 1.59 1.95 Kurtosis 0.47 -0.64 -0.99 -0.05 -0.17 Skewness -0.57 0.24 0.08 -0.12 0.19 Range 8 6 9 8 9 Minimum 11 10 12 9 13 Maximum 19 16 21 17 22 Lower Quartile, Q1 15 12 14 12 16 Upper Quartile, Q3 17 14 17.75 14.75 18.75 The average years of education of the owners of the BMW car is 15.92 years (SD = 1.83). About half of the BMW car buyer’s years of education is above 16 years. The range of the BMW car buyer’s years of education is 8 years with minimum and maximum buyer’s years of education being 11 years and 19 years, respectively. The middle half of the BMW car buyer’s years of education is in-between 15 years and 17 years. The BMW car buyer’s years of education is slightly negatively skewed. The average years of education of the owners of the Cadillac car is 12.86 years (SD = 1.58). About half of the Cadillac car buyer’s years of education is below 13 years. The range of the Cadillac car buyer’s years of education is 6 years with minimum and maximum buyer’s years of education being 10 years and 16 years, respectively. The middle half of the Cadillac car buyer’s years of education is in-between 12 years and 14 years. The Cadillac car buyer’s years of education is approximately normally distributed. The average years of education of the owners of the Lexus car is 15.98 years (SD = 2.46). About half of the Lexus car buyer’s years of education is above 16 years. The range of the Lexus car buyer’s years of education is 9 years with minimum and maximum buyer’s years of education being 12 years and 21 years, respectively. The middle half of the Lexus car buyer’s years of education is in-between 14 years and 17.75 years. The Lexus car buyer’s years of education is normally distributed. The average years of education of the owners of the Lincoln car is 13.22 years (SD = 1.59). About half of the Lincoln car buyer’s years of education is below 13 years. The range of the Lincoln car buyer’s years of education is 8 years with minimum and maximum buyer’s years of education being 9 years and 17 years, respectively. The middle half of the Lincoln car buyer’s years of education is in-between 12 years and 14.75 years. The Lincoln car buyer’s years of education is normally distributed. The average years of education of the owners of the Mercedes car is 17.2 years (SD = 1.95). About half of the Mercedes car buyer’s years of education is above 17 years. The range of the Mercedes car buyer’s years of education is 9 years with minimum and maximum buyer’s years of education being 13 years and 22 years, respectively. The middle half of the Mercedes car buyer’s years of education is in-between 16 years and 18.75 years. The Mercedes car buyer’s years of education is normally distributed. Figure 5 shows the Boxplots comparing distribution for the years of education of the owners of the five luxury cars indicating that the years of education of the owners of the Cadillac car is lower and less variable as compared to the years of education of the owners of other luxury cars. Figure 5: Boxplots comparing distribution for the years of education of the owners of the five luxury cars Figure 6 shows the mean plot for the years of education of the owners of the five luxury cars indicating that the average buyer’s years of education for the Cadillac car is lower as compared to the average buyer’s years of education of the owners of other luxury cars. Figure 6: Mean plot for the years of education of the owners of the five luxury cars From above statistical analysis for the ages, household incomes, and education of the five groups of car buyers, there appears that the Cadillac car buyer age is higher, their household incomes is lower and their years of education is less as compared to the owners of other luxury cars. Conclusions In conclusion, the results suggested that the age of the owners of the Cadillac car is higher and less variable as compared to the age of the owners of other luxury cars. Furthermore, the household income of the owners of the Cadillac car is lower and less variable as compared to the household income of the owners of other luxury cars. Also, the years of education of the owners of the Cadillac car is lower and less variable as compared to the years of education of the owners of other luxury cars. Appendix A: Histograms for the ages of the owners of the five luxury cars Appendix B: Histograms for the household incomes of the owners of the five luxury cars Appendix C: Histograms for the years of education of the owners of the five luxury cars Read More