MINI PROJECT
Subarna N
February 16, 2018
MINI PROJECT-Airline Pricing Analysis
Setting directory
## Parsed with column specification:
## cols(
## Airline = col_character(),
## Aircraft = col_character(),
## FlightDuration = col_double(),
## TravelMonth = col_character(),
## IsInternational = col_character(),
## SeatsEconomy = col_integer(),
## SeatsPremium = col_integer(),
## PitchEconomy = col_integer(),
## PitchPremium = col_integer(),
## WidthEconomy = col_integer(),
## WidthPremium = col_integer(),
## PriceEconomy = col_integer(),
## PricePremium = col_integer(),
## PriceRelative = col_double(),
## SeatsTotal = col_integer(),
## PitchDifference = col_integer(),
## WidthDifference = col_integer(),
## PercentPremiumSeats = col_double()
## )SUMMARIZING THE DATSET
## Airline Aircraft FlightDuration TravelMonth
## Length:458 Length:458 Min. : 1.250 Length:458
## Class :character Class :character 1st Qu.: 4.260 Class :character
## Mode :character Mode :character Median : 7.790 Mode :character
## Mean : 7.578
## 3rd Qu.:10.620
## Max. :14.660
## IsInternational SeatsEconomy SeatsPremium PitchEconomy
## Length:458 Min. : 78.0 Min. : 8.00 Min. :30.00
## Class :character 1st Qu.:133.0 1st Qu.:21.00 1st Qu.:31.00
## Mode :character Median :185.0 Median :36.00 Median :31.00
## Mean :202.3 Mean :33.65 Mean :31.22
## 3rd Qu.:243.0 3rd Qu.:40.00 3rd Qu.:32.00
## Max. :389.0 Max. :66.00 Max. :33.00
## PitchPremium WidthEconomy WidthPremium PriceEconomy
## Min. :34.00 Min. :17.00 Min. :17.00 Min. : 65
## 1st Qu.:38.00 1st Qu.:18.00 1st Qu.:19.00 1st Qu.: 413
## Median :38.00 Median :18.00 Median :19.00 Median :1242
## Mean :37.91 Mean :17.84 Mean :19.47 Mean :1327
## 3rd Qu.:38.00 3rd Qu.:18.00 3rd Qu.:21.00 3rd Qu.:1909
## Max. :40.00 Max. :19.00 Max. :21.00 Max. :3593
## PricePremium PriceRelative SeatsTotal PitchDifference
## Min. : 86.0 Min. :0.0200 Min. : 98 Min. : 2.000
## 1st Qu.: 528.8 1st Qu.:0.1000 1st Qu.:166 1st Qu.: 6.000
## Median :1737.0 Median :0.3650 Median :227 Median : 7.000
## Mean :1845.3 Mean :0.4872 Mean :236 Mean : 6.688
## 3rd Qu.:2989.0 3rd Qu.:0.7400 3rd Qu.:279 3rd Qu.: 7.000
## Max. :7414.0 Max. :1.8900 Max. :441 Max. :10.000
## WidthDifference PercentPremiumSeats
## Min. :0.000 Min. : 4.71
## 1st Qu.:1.000 1st Qu.:12.28
## Median :1.000 Median :13.21
## Mean :1.633 Mean :14.65
## 3rd Qu.:3.000 3rd Qu.:15.36
## Max. :4.000 Max. :24.69PLOTS
Visualisation of each variable 
Corrgram -Variance-Covariance Matrix
hypothesis: the percent premium seats are higher in international than in domestic
##
## Welch Two Sample t-test
##
## data: mytable and mytablea
## t = 1.1218, df = 1.0005, p-value = 0.4634
## alternative hypothesis: true difference in means is not equal to 0
## 95 percent confidence interval:
## -2186.980 2611.054
## sample estimates:
## mean of x mean of y
## 229.00000 16.96296The p value = 0.4634 we accept null hypothesis , and there is no significant difference between the percent of premium seats of inernational and doestic airlines
##
## Call:
## lm(formula = PriceRelative ~ FlightDuration + IsInternational +
## SeatsEconomy + SeatsPremium + WidthEconomy + WidthPremium +
## PriceEconomy + PricePremium + PitchEconomy + PitchPremium +
## PercentPremiumSeats)
##
## Residuals:
## Min 1Q Median 3Q Max
## -0.77203 -0.10435 0.00911 0.07462 0.85167
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) -3.627e+00 1.918e+00 -1.891 0.059229 .
## FlightDuration 2.079e-02 4.580e-03 4.538 7.30e-06 ***
## IsInternationalInternational 1.495e-01 1.597e-01 0.936 0.349857
## SeatsEconomy 1.819e-03 5.294e-04 3.437 0.000644 ***
## SeatsPremium -1.592e-02 3.279e-03 -4.854 1.68e-06 ***
## WidthEconomy -2.124e-01 3.181e-02 -6.678 7.24e-11 ***
## WidthPremium 6.248e-02 1.630e-02 3.833 0.000145 ***
## PriceEconomy -8.512e-04 2.987e-05 -28.495 < 2e-16 ***
## PricePremium 5.491e-04 2.256e-05 24.338 < 2e-16 ***
## PitchEconomy 1.015e-01 2.921e-02 3.475 0.000560 ***
## PitchPremium 8.383e-02 3.599e-02 2.329 0.020291 *
## PercentPremiumSeats 2.253e-02 7.495e-03 3.006 0.002794 **
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 0.2188 on 446 degrees of freedom
## Multiple R-squared: 0.77, Adjusted R-squared: 0.7643
## F-statistic: 135.7 on 11 and 446 DF, p-value: < 2.2e-16explanatory variable(s) whose beta-coefficients are not statistically significant (p > 0.05). 1.IsInternationalInternational explanatory variable(s) whose beta-coefficients are statistically significant (p < 0.05). FlightDuration
SeatsEconomy
SeatsPremium
WidthEconomy
WidthPremium
PriceEconomy
PricePremium
PitchEconomy
PitchPremium
PercentPremiumSeats
The regression analysis shows that the p-value: < 2.2e-16(significant),of Ftest is less than 0.05 which means the developed regression model is good fit. The multiple R square value is:0.77,which means that 77% of variations in the dependent variable can be explained by the independent variable.The value increases when we add independent variable to it.Adjusted R square value is 0.7643.It means 76% variation in the dependent variable can be explained by the independent variable it become precise when we add independent variable to it.