Decline in Chrysler Sales Chrysler

¶ … Decline in Chrysler Sales

Chrysler Sales and U.S. Car Manufacture

Chrysler Sales and Gas Prices

Chrysler Car Sales and Unemployment

Validity and Reliability

Validity

Reliability

Future Changes to Research

In the previous paper research was undertaken to gather data which could be used to examine potential influences on the sales patterns seen Chrysler cars. The dependant variable is the number of cars sold, with information taken from the period 1999-2011. It has been hypothesized that it is the decline in sales which lead to the firms' failure. However, while some data, such as units sold, is obtainable, as the firm was part of other companies and is now in private hands full financial data is not available. However, in terms of general trends, as seen in the graph in figure 1 shows the decline in sales, where the units sold is it at the lowest at the time the organization faces failure.

Figure 1; Number of Chrysler cars sold 1999-2011

However, this does not tell us how or why the sales declined. Independent variables which may have impacted in the decline in sales have been identified as the decline in the number of cars manufactured in the U.S., the cost of gas and the level of unemployment.

To assess the potential relationship between the independent variables and the dependent variable the use of a regression analysis can be undertake along with ANOVA to determine of there may be a causal relationship. Each f the independent variables will be examined in turn.

2.

Analysis

2.1

Chrysler Sales and U.S. Car Manufacture

Figure 1 shows the numbers of unites sold by Chrysler plotted against the total manufacture in the U.S. The use of a scatter graph allows for the assessment of a relationship. The trend line drawn is uses the least square regression technique to determine if there is a good fit.

Figure 2; Chrysler sales against U.S. car manufacture

The graph with the trend line appears to indicate a good fit, where it appears that there is a relationship between the numbers of cars sold and the numbers of car manufactured in the U.S. The regression analysis gives an R2 result of 0.9535, indicating a very close correlation. To assess the results an ANOVA with a 95% level of significance may also be performed, which gives a significant f at 1.11, which supports the result that indicates that there is a positive correlation.

2.2

Chrysler Sales and Gas Prices

Figure 2 uses the same approach, with a scatter chart draw with a trend line to assess if there is any correlation between the two data sets. The gas price, which is given in cents per mile, appears to have an inverse correlation seen with the downward sloping trend line.