statistics

A finance manager employed by an automobile dealership believes that the number of cars sold in his local market can be predicted by the interest rate charged for a loan.

Interest Rate (%) Number of Cars Sold (100s)
3 10
5 7
6 5
8 2
The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output.

Regression Statistics
Multiple R 0.998868
R2 0.997738

Coefficient
Intercept 14.88462
Interest Rate -1.61538
Are there factors other than interest rate charged for a loan that the finance manager should consider in predicting future car sales?
Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning.The dealership’s vice-president of marketing has requested a sales forecast at the prevailing interest rate of 7%.
As finance manager, what reasons would you convey to the vice-president in recommending this forecasting model?
Is the prediction of car sales at 7% a reflection of the current downturn in the economy? How might this impact the dealership’s business?

Collepals.com Plagiarism Free Papers

Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS

Why Hire Collepals.com writers to do your paper?

Quality- We are experienced and have access to ample research materials.

We write plagiarism Free Content

Confidential- We never share or sell your personal information to third parties.

Support-Chat with us today! We are always waiting to answer all your questions.