The following Excel output is for 89 makes of cars manufactured in the U.S. Give
ID: 1212262 • Letter: T
Question
The following Excel output is for 89 makes of cars manufactured in the U.S. Given the descriptive statistics it should be possible to figure out the units of measurement. MPG is miles per gallon. Are the variables individually correlated with MPG in the manner you expect? Do the variables in the regression have the sign that you expect? Which variables are statistically significant in the regression at five percent? How well does the regression .t the data? Explain. What is the effect on MPG of an increase in size of car of one-quarter of a ton (where one ton equals 2,000 pounds)?Explanation / Answer
a) Yes the correlation individually is as per the expectation i.e. more turning radius, more weight and length all will lead to lesser MPG.
b) Length is not having the expectedd sign. As it is negatively correlated so expected sign was negative.
c) Significance value a = 0.05 So for variable to be significant a should be greater than p value. This is true only for variable turning circle.
d) R square = 0.8325 so which is satisfactory so regression is fitting to data