All the efficiency money can buy. A sample of 84 model-

2004 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. Here are displays and computer output:

a) State what you want to know, identify the variables, and give the appropriate hypotheses.

b) Check the assumptions and conditions.

c) If the conditions are met, complete the analysis.

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Efficiency (highway mpg) 50- 30 20- 20,000 40,000 60,000 80,000 Manufacturer's Suggested Retail Price Dependent variable is: Highway MPG R squared 30.1% = s = 5.298 with 84 -2 = 82 degrees of freedom Coefficient SE (Coeff) t-ratio P-value Variable Constant 33.06 1.299 25.5 0.0001 MSRP -2.165e-4 3.639e-5 -5.95 0.0001 22.5+ 15.0- Residuals 7.5+ 0.0- -7.5 18 21 24 27 Predicted 30 30