Module 10 Hand in Assignment

1. Consumer Research magazine reported the following information on estimated gasoline

consumption in liters per 100 km rating based on highway driving and the engine capacity in liters
for 11 selected automobiles with manual transmissions.
Car Model Estimated liters per 100 km of Engine Capacity (liters)
highway driving
Ferrari Testarossa 15.7 4.9
Ford Escort 7.6 1.8
Mazda 626 7.6 2.2
Nissan 300 ZX 9.8 3.0
Ford Taurus 9.0 3.0
Saturn SL 6.4 1.9
Honda Accord 8.1 2.2
Accura Integra 8.4 1.8
Toyota Tercel 6.7 1.5
Geo Metro LSI 4.7 1.0
Lamborghini Diablo 16.8 4.7
Plot the data on the following graft (note the Geo and Lamborghini have been plotted.)

Fue l Consumption and e ngine capacity

18

16

14

12

10
Fuel consumption pe r 100 Kms (lite rs)
8

0
0 1 2 3 4 5
Engine capacity (liters)

1
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 a. Calculate the regression equation and plot it on the graph above.
b. Interpret the slope and the intercept.
c. Calculate the coefficient of correlation. What does it mean?
d. Calculate the coefficient of determination. What does it mean? Give some other factors
that could explain fuel consumption.
e. Estimate the fuel consumption for a vehicle with an engine capacity of 4.5 liters.
f. A vehicle has a fuel consumption of 12 liters per 100 km estimate the engine size using the
regression equation.
g. Do a hypothesis test on the correlation coefficient at the 5% significance level.

2. The following set of data represents the findings of a study on body mass and drunkenness on a
randomly selected set of college students. Ten randomly selected students were measured for body
mass in kilograms and each given 200 ml of Everclear (180 Proof). Each subject was then given the
MBT Drunkenness Profile which rates subjects in 6 major categories and provides an overall score for
drunkenness on a scale of 1 to 100. Results are as follows:

BMASS 75 58 53 87 89 52 57 81 92 69
MBT 68 73 79 55 48 82 78 60 51 65
Excel output:

SUMMARY OUTPUT

Regression Statistics
Multiple R -0.97403485
R Square 0.94874389
Adjusted R Square 0.94233688
Standard Error 2.91792395
Observations 10

Coefficients Standard Error t Stat P-value

Intercept 119.997626 4.540362465 26.42909 4.51601E-09
BMASS -0.7587325 0.062350795 -12.1688 1.92728E-06

a) Determine the Least-Squares Regression line for this study and interpret the slope and intercept.
b) Determine and interpret the coefficient of correlation.
c) What percentage of the variation in drunkenness can be explained by body mass?
d) Find point estimate for the predicted value of Drunkenness for a person with a body mass of 60
kg.
e) Conduct a hypothesis test on the correlation coefficient at the 5% level of significance.

2
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