Dirt bikes 2014. More than one million motorcycles are sold annually (www.webbikeworld.com). Off-road motorcycles (often called “dirt bikes”) are a market segment

(about 18%) that is highly specialized and offers great variation in features. This makes it a good segment to study to learn about which features account for the cost (manufacturer’s suggested retail price, MSRP) of a dirt bike. Researchers collected data on dirt bikes. Their original goal was to study market differentiation among brands (Jiang Lu, Joseph B. Kadane, and Peter Boatwright, The Dirt on Bikes: An Illustration of CART Models for Brand Differentiation). We have updated the data and can use it to predict msrp from other variables.

Here are scatterplots of three potential predictors, Wheelbase

(in), Displacement (cu in), and Bore (in).

Comment on the appropriateness of using these variables as predictors on the basis of the scatterplots.

Transcribed Image Text:

MSRP MSRP MSRP 10000 7500 5000 2500 10000 7500 5000 2500 10000 7500 5000 2500 37.5 45.0 52.5 Wheel Base + 125 250 375 Displacement 45 60 75 90 Bore +