A sample of 8484 cars from an online information service was examined to see how
ID: 3839292 • Letter: A
Question
A sample of
8484
cars from an online information service was examined to see how fuel efficiency (as highway mpg) relates to the cost (manufacturer's suggested retail price in dollars) of cars. Scatterplots and computer outputs are provided in the accompanying table. Complete parts a) through c) below.
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Click the icon to view the scatterplots and computer output.
a) State what a researcher would want to know, identify the variables, and give the appropriate hypotheses.
What would a researcher want to know?
A.
If Price causes Highway MPG to go down
B.
If there is a linear association between Price and Highway MPG in cars
C.
If Highway MPG causes Price to go up
D.
If Price causes Highway MPG to go up
E.
If Highway MPG causes Price to go down
What are the variables? Select all that apply.
A.
Highway Residual
B.
Intercept
C.
Price
D.
Highway Predicted
E.
P-Value
F.
Highway MPG
G.
Coefficient
H.
t-Ratio
What are the appropriate null and alternative hypotheses?
Upper H 0H0:
beta 00
beta 11
not equals
less than<
equals=
greater than>
nothing
Upper H Subscript Upper AHA:
beta 11
beta 00
greater than>
not equals
less than<
equals=
nothing
b) Check the assumptions and conditions.
The Quantitative Data Condition is
violated,
satisfied,
the Linearity Condition is
satisfied,
violated,
the Randomization Condition is
satisfied,
violated,
the Equal Spread Condition is
satisfied,
violated,
the Nearly Normal Condition is
violated,
satisfied,
and the Outlier Condition is
violated.
satisfied.
c) If the conditions are met, complete the analysis. Choose the correct answer below.
A.
Fail to reject
Upper H 0H0.
There is a moderately strong, positive linear relationship between efficiency and price. An increase in price of $1000 is associated, on average, with an increase of
0.220.22
highway MPG.
B.
Reject
Upper H 0H0.
There is a moderately strong, negative linear relationship between efficiency and price. An increase in price of $1000 is associated, on average, with a decrease of
0.220.22
highway MPG.
C.
Reject
Upper H 0H0.
There is a moderately strong, positive linear relationship between efficiency and price. An increase in price of $1000 is associated, on average, with an increase of
0.220.22
highway MPG.
D.
Fail to reject
Upper H 0H0.
There is no relationship between efficiency and price.
E.
Fail to reject
Upper H 0H0.
There is a moderately strong, positive linear relationship between efficiency and price. An increase in price of $1000 is associated, on average, with an increase of
0.220.22
highway MPG.
F.
Question needs grading. Grade: of 1 ptSubmit Grade Skill Builder Question Help Settings Accessibility + On-Screen Keyboard + About + 10- 40000 60000 20000 80000 MSRP Dependent variable is: Highway MPG R-squared 29.87 s 5. 292 with 84 2 82 degrees of freedom variable Coefficient SE (Coeff) t-Ratio P-value Intercept 32.9837 1.297 25.427 0.0001 0.000215 0.000036 5.910 0.0001 MSRP 30- 25- 20- 15- 8 10- 15 20 30 -10- -15 Highway PredictedExplanation / Answer
What would a researcher want to know?
Here the researcher wants to know if "If there is a linear association between Price and Highway MPG in cars". By seeing the diagram we can say that.
If Highway MPG causes Price to go down. The variables are "Highway Residual" and "Highway Predicted" and "Highway MPG"