Car Dealerships

A popular U.S. automobile manufacturer has 10,000 dealerships located throughout the country. The automobile manufacturer has multiple brands within its portfolio: a value brand that caters to younger clientele, a moderate brand that caters to middle class customers and finally, a premium brand which is marketed to wealthy clientele. The company’s leadership, located at corporate headquarters, is very interested in the relationship between the median salary of potential customers and the company’s revenue. Specifically, the company is concerned that if potential customers’ salaries continue to not increase in the future, the company’s revenue will remain stagnant, which will in turn steer away potential investors and shareholders. The company’s research department recently collected data for analysis in order to support leadership’s upcoming discussion with shareholders and investors about the company’s future revenue forecast. Sales figures from a random sample of 1000 dealerships were collected. The research division also conducted statistical analysis, using data provided by the Bureau of Labor and Statistics, to calculate the median salary of people living in the vicinity of these 1,000 dealerships. The Dealership Number, State, Median Salary, Annual Sales, Number of Vehicles Sold, Square Footage and Quality Award Winner data were collected for these 1000 dealerships.

StatCrunch Data Set

1. Create a histogram using a bin width of 5000 for the Median Salary data. From your visual analysis, describe the shape and center of the distribution. Select the correct choice below and fill in the answer box to complete your choice.

(Type a whole number.)

A.The distribution is bimodal with the typical Median Salary around

B.The distribution is right-skewed with the typical Median Salary around $

C.

The distribution is left-skewed with the typical Median Salary around $

D.

The distribution is roughly symmetric and roughly unimodal with the typical Median Salary around $

2. Based upon your visual analysis of the Median Salary histogram, what is the most appropriate measure of center and variation to calculate and interpret?

A.The mean and standard deviation because the shape of the distribution is symmetrical

B.The median and standard deviation because the shape of the distribution is skewed.

C.The mean and Interquartile Range because the shape of the distribution is symmetrical

D.The median and Interquartile Range because the shape of the distribution is skewed.

3. What was the mean Median Salary for these 1000 dealership locations?

4. What was the standard deviation of the Median Salary for these 1000dealership locations?

5. What was the median Median Salary for these 1000 dealership locations?

6. What was the Interquartile Range of the Median Salary for these 1000dealership locations?

7. Corporate headquarters believes that there is a strong relationship between the median salary of people living in the vicinity of their dealerships and the annual sales of each dealership. Headquarters is particularly interested in the relationship between these two variables at its high-revenue dealership locations, defined as a dealership with at least $100,000,000 or more in annual sales. How many dealerships in this data set have annual sales greater than or equal to $100,000,000?

8. We have an interest in finding out if the different dealerships sell different kinds of cars. Although our data set does not contain a lot of detail, one way to find such differences is by looking at the combination of Annual Sales and Number of Vehicles Sold for each dealership.

Find the median values of Annual Sales and Number of Vehicles Sold.

The median value for Annual Sales is $ and the median value for Number of Vehicles Sold is