4-2 Scenario Analysis: Cars Soldsouthern New Hampshire Unive

4-2 Scenario Analysis: Cars SoldSouthern New Hampshire UniversityQSO-510 Quantitative Analysis 09:38:17 GMT -05:004-2 Scenario Analysis: Cars SoldThe data used for this analysis is a sample of data showing the number of cars sold with a specific interest rate within a local market. The purpose of this analysis is to determine if the number of cars sold in this local market can be predicted by the interest rate charged for a loan. The data can be found in Figure 1.Figure 1Main ElementsThe regression output data in Figure 2 identifies R2 as 0.997738. If R2 is multiplied by100, it equals 99.8%. That determines future car sales are impacted by interest rate charged for a loan by 99.8%. Future car sales are only impacted by .2% of other variables, so the finance manager does not need to consider other factors in predicting future car sales. 09:38:17 GMT -05:00Figure 2Integration and ApplicationFigure 2 shows the correlation r is .998868 which indicates a strong linear association between x and y. A strong correlation between the two variables indicates accurate predictability so interest rate charged for a loan is the most important factor to be considered in predicting future car sales.The regression output