Used Car Price Estimation: Moving From Linear Regression Towards A New S-Curve Model

Salim, Fadzilah and Abu, Nor Azman (2021) Used Car Price Estimation: Moving From Linear Regression Towards A New S-Curve Model. International Journal of Business and Society, 22 (3). pp. 1174-1187. ISSN 1511-6670

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Abstract

A simple linear regression is commonly used as a practical predictive model on a used car price. It is a useful model which carry smaller prediction errors around its central mean. Practically, real data will hardly produce a linear relationship. A non-linear model has been observed to better forecast any price appreciation and manage prediction errors in real-life phenomena. In this paper, an S-curve model shall be proposed as an alternative non-linear model in estimating the price of used cars. A dynamic S-shaped Membership Function (SMF) is used as a basis to build an S-curve pricing model in this research study. Real used car price data has been collected from a popular website. Comparisons against linear regression and cubic regression are made. An S-curve model has produced smaller error than linear regression while its residual is closer to a cubic regression. Overall, an S-curve model is anticipated to provide a better and more practical estimate on used car prices in Malaysia.

Item Type:	Article
Uncontrolled Keywords:	Price modelling, S-curve model, S-shaped curve, Used car prices
Divisions:	Faculty of Electrical and Electronic Engineering Technology
Depositing User:	Sabariah Ismail
Date Deposited:	15 Mar 2022 17:08
Last Modified:	15 Mar 2022 17:08
URI:	http://eprints.utem.edu.my/id/eprint/25720
Statistic Details:	View Download Statistic

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