TITLE: Price forecasting for used Cars.
NAME(S): Rishabh Rana 1459503
ABSTRACT
The number of used vehicle market continues to grow in every part of world including New Zealand, with an increase of 15% in the sales of used as well as imported used cars than last year.
The task is to create a system software that allows us to predict the price for cars based on several attributes such as car’s condition, engine, current market value, background details, mileage, model, and make year, etc. The work is how to make machine so that it can learn those attributes and generates the price of car using them? To solve this, I opt Machine learning to help me out. It will help to forecast the price based on different features. I will be using supervised
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It depend on several factors usually like age of the car, make, model, origin, mileage, and horsepower. Other factors are type of fuel it works on. acceleration, interior, volume of cylinders, number of doors, breaking system, transmission type, its color and weight, etc. Machine learning systems automatically learn programs from Data. It follows a combination three components: - a) Representation b) Evaluation c) Optimization.
According to this project, we want to forecast the price for cars and to predict it we need to provide inputs to forecast the target, this process include Supervised Technique. As in supervised learning it takes a known set of input object and known responses to the desired object, and seeks to build a forecasting model that produce specific predictions for the response to new object.
Supervised Learning is further divided into two categories: - first one is classification and second one is regression. Classification for those responses that just have a few known values, like 'true ' or 'false '. But Regression are for those responses that are of real number, such as miles per litre for a particular
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But we cannot use simple linear regression in this case because our project input include multiple features like model, make year, brand name, transmission, mileage, doors and type, etc. to train our data value therefore our focus will be on using the multiple linear regression for this project.
We are using Multiple Linear Regression defined as a model that “the relationship between two or more variables by fitting a linear equation to observed data. Every value of the independent variable x is associated with a value of the dependent variable y”. So this definition directly relates our above methods for handling data inputs therefore this stats that our model is fit to our application. The most important goals of multiple regression analysis are to i) Describe ii) Predict iii)
The specific areas I studied, based on primary and secondary sources are Performance, Gas Mileage and Price of each automobile.
Purchasing a car is one of the biggest and most important decisions that someone will make during their lifetime. Over the past several years, the prices of a vehicle have increased significantly due to the rise of inflation. Economists compare averages of vehicles to calculate and determine the cost of every vehicle that ends up on the car lot. To determine the cost they interpret all the above information and include everything from the cost of making the vehicle to the time of selling it. In the long run, the demand for vehicles is inelastic because they become a necessity for many people. However, in the short run, the demand is elastic because the purchase of a new vehicle can be put off for a while.
because of the line of best fit. Using line of best fit means I can
Offering consumers access to an extensive inventory online along with warranties, service, financing, appraisals, and add the consumer’s ability to sell the car to the dealership is CarMax’s brand. CarMax needs to continue to leverage their competitive strengths while making sure they offer the best-priced cars to the very competitive used car buying consumer. While it may be attractive to CarMax to enter new car market, they risk losing the ability to conduct their business model as manufacturers have various rules and contract requirements to carry the Chevrolet, Buick, Cadillac, Honda, or Toyota product lines. With this, they risk losing their brand recognition and identity with their consumers. Additionally, costs associated with buying an existing dealership with inventory and various licensing and franchising fees have the potential to drive up costs and therefore threaten their ability to price
The years 2008-09 and 2012-13 were years of global economic crisis and the same is visible in the sales figures. Further, the FY 2013-14 too has not been a great year, especially for passenger segment. During the first two months of 2013-14, the domestic Passenger Vehicle (PV) industry volumes declined by 8.6% year on year, continuing with the trend in negative growth started in fourth quarter 2012-13. While all PV segments experienced weakness in demand in April-May 2013, the biggest contribution to the fall in volumes was from Micro-Car segment & Compact-Car segment. More so, SIAM had to revise its sales forecast many times for the FY13. It had initially predic...
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It is no doubt that automobiles have become a way of life in the current society besides the transport sector contributing immensely to the economic growth of every cou...
Automotive manufacturing is the conversion of raw materials into finished products. It involves a variety of activities such as product design, material selection and handling, control and production, planning and procurement, inspection and quality, packaging, finance and sales. During the process, the key factors for an industry are its competitiveness and productivity over another industry which is command by the economy of manufacturer, the quickness and ease, of a quality product. These factors are important for any manufacturers who want to set their companies standards according to the increasing globalization of all aspects of product including mason, technology and market. Quickness, economy and quality in manufacturing in automotive manufacturing can be achieved by using automated machine. It is believed that it will reduce the human error using conventional machine and help in manufacturing complex automated parts and provide reliability and quality required for competitive manufacturing. While this thinking was not limited to a scope since fully automated factories uses hard automation system for manufacturing are not yet feasible due to practical, financial and cybernetic reasons. According to cybernetics point of view, complete automation is not suitable for any manufacturing organization. Instead its better
Today, Information systems have come a long way in creating new services and provided solutions and a better chance for certain issues facing automobile industry. Automobile Industries have taken advantage of this to bring into more desirable and excellent operations, improve value to their products and to their customers, as well as enable new business standard, style and image. In this research paper, we will explore the use of Information Systems in vehicles, the arrangement of Information Systems to sustain business operations of manufacturers, and the effect of doing so on automobile industries.
When you hear the term “used car”, what is the first thing that comes to mind? Some may think of an old rusty Cadillac that belongs in a junkyard. Others may think of that nice Camaro at the used car dealership for sale. Over the years, used car sales have skyrocketed. In 2012, over 40.5 million used cars were purchased in the United States (Atiyeh, 2013). Used cars are in high demand in today’s economy because of the lower prices, slightly higher gas mileage, and that they can be more trustworthy against some of the newer models. With used car sales always climbing, how do buyers know what they are looking for in a vehicle? How do they come down to the final decision of where to purchase the vehicle? Most importantly, how can buyers make sure that they do not get scammed? This paper will take you through the process of purchasing a used vehicle, from deciding on a budget, all the way to the final purchase of your “new” car.
There are four main factors influence the demand of cars. Firstly, the price of cars will affect the demand of cars. Secondly, the citizens’ income has the effect for the demand of cars. Thirdly, the government’s macroeconomic control policies will also effect the demand. Finally, the price of gasoline will affect the demand.
Advertising=>Each year car manufacturers spend millions on advertising, (TV commercials, bill boards...). They also spend large amounts of money on market research to determine what customers are looking for when buying their vehicles. This is an element that is ever changing especially in recent years, I will elaborate further in the second part of my answer.
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Regression analysis is a technique used in statistics for investigating and modeling the relationship between variables (Douglas Montgomery, Peck, &
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