Fuel Efficiency With the ever increasing price of gasoline, both drivers and auto companies are motivated to raise the fuel efficiency of cars. Recent information posted by the U.S. government proposes some simple ways to increase fuel efficiency (see www.fueleconomy.gov): avoid rapid acceleration, avoid driving over 60mph, reduce idling, and reduce the vehicle's weight. An extra 100 pounds can reduce fuel efficiency (mpg) by up to 2%. A marketing executive is studying the relationship between the fuel efficiency of cars (as measured in miles per gallon) and their weight to design a new compact car campaign. The variables and the data set are shown below. - Model of Car - Engine Size (L) - Cylinders - MSRP (Manufacturer's Suggested Retail Price in \$) - City (mpg) - Highway (mpg) - Weight (pounds) - Type and Country of manufacturer Discussion Use Excel to conduct regression analysis and answer the following questions. Describe the relationship of Weight, MSRP, and Engine Size with fuel efficiency (both City and Highway) in a written report and find a regression model to predict fuel efficiency. Only in the U.S. is fuel efficiency measured in miles per gallon. The rest of the world uses liters per 100 kilometers. To convert mpg to l/km compute 235.215/mpg. Try that form of the variables. Be sure to use scatterplots and correlation tables in your analysis Be sure to plot the residuals. Based on the correlations and linear regressions, which item would be the best predictor of fuel efficiency? Which would be the worst? Are there any surprising relationships? Write one or two sentences on the interpretation of the coefficient of each of the independent variables, making specific reference to the value of each coefficient given by your model. Fuel Efficiency With the ever increasing price of gasoline, both drivers and auto companies are motivated to raise the fuel efficiency of cars. Recent information posted by the U.S. government proposes some simple ways to increase fuel efficiency (see www.fueleconomy.gov): avoid rapid acceleration, avoid driving over 60mph, reduce idling, and reduce the vehicle's weight. An extra 100 pounds can reduce fuel efficiency (mpg) by up to 2%. A marketing executive is studying the relationship between the fuel efficiency of cars (as measured in miles per gallon) and their weight to design a new compact car campaign. The variables and the data set are shown below. - Model of Car - Engine Size (L) - Cylinders - MSRP (Manufacturer's Suggested Retail Price in \$) - City (mpg) - Highway (mpg) - Weight (pounds) - Type and Country of manufacturer Discussion Use Excel to conduct regression analysis and answer the following questions. Describe the relationship of Weight, MSRP, and Engine Size with fuel efficiency (both City and Highway) in a written report and find a regression model to predict fuel efficiency. Only in the U.S. is fuel efficiency measured in miles per gallon. The rest of the world uses liters per 100 kilometers. To convert mpg to l/km compute 235.215/mpg. Try that form of the variables. Be sure to use scatterplots and correlation tables in your analysis Be sure to plot the residuals. Based on the correlations and linear regressions, which item would be the best predictor of fuel efficiency? Which would be the worst? Are there any surprising relationships? Write one or two sentences on the interpretation of the coefficient of each of the independent variables, making specific reference to the value of each coefficient given by your model
