Econometrics final exam: Factors affecting quantity of new cars sold foreign trade University Students

This research investigates the relationship between microeconomic, macroeconomic variables and number of cars sold in US. The main objective is to determine the factors that affecting the number of car sold in US. This research covers the time period from 1975 to 1990. The analysis methods that have been applied in this study include descriptive statistics, linear regression and correlation analysis. The findings show that price, income have positive relationship with the number of car sales in US, while the prime interest rate and population have negative relationship with the number of car sales in US. The income has the most influence on the quantity of car sold while the population has unreliable effect on it. However, the gap in impact on number of cars sold among four factors is not huge. The findings were consistent with the previous findings done by other researcher.