Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A car rental company wants to evaluate the premise that heavier cars are less fuel efficient than lighter cars. In other words, the company expects

A car rental company wants to evaluate the premise that heavier cars are less fuel efficient than lighter cars. In other words, the company expects that fuel efficiency (miles per gallon) and weight of the car (often measured in thousands of pounds) are correlated. Performing this analysis will help the company optimize its business model and charge its customers appropriately.

You will work with a cars data set that includes two variables:

Miles per gallon (coded as mpg in the data set)

Weight of the car (coded as wt in the data set)

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Cars data frame (showing only the first five observations) Unnamed: 0 mpg cyl disp hp drat wt qsec vs am gear carb 30 Maserati Bora 15.0 8 301.0 335 3.54 3.570 14.60 0 5 8 10 Merc 280C 17.8 6 167.6 123 3.92 3.440 18.90 0 4 4 11 Merc 450SE 16.4 8 275.8 180 3.07 4.070 17.40 0 0 3 3 21 Dodge Challenger 15.5 8 318.0 150 2.76 3.520 16.87 0 0 3 2 3 Hornet 4 Drive 21.4 6 258.0 110 3.08 3.215 19.44 1 0 3OLS Regression Results === Dep. Variable: mpg R - squared : 0.736 Model : OLS Adj. R-squared : 0.726 Method : Least Squares F-statistic: 77.94 Date : Thu, 29 Sep 2022 Prob (F-statistic) : 1. 40e-09 Time : 18:37:15 Log-Likelihood : -75.445 No. Observations : 30 AIC : 154.9 Of Residuals: 28 BIC: 157.7 Df Model : 1 Covariance Type: nonrobust = = coef std err t P> t [0. 025 0.975] Intercept 36.9758 2.029 18.227 0.000 32.820 41 . 131 wt -5. 2925 0. 599 -8.828 0.000 -6.520 -4.064 Omnibus : 4. 140 Durbin-Watson : 1.885 Prob (Omnibus ) : 0. 126 Jarque-Bera (JB) : 3.222 Skew : 0. 802 Prob ( JB) : 0. 200 Kurtosis : 3.041 Cond. No. 13.1 Warnings : [1] Standard Errors assume that the covariance matrix of the errors is correctly specified

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Statistics For Business And Economics

Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam

7th Edition

1305081595, 978-1305081598

More Books

Students also viewed these Mathematics questions