Purchase Solution

# Regression Analysis

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One of the editors of a major automobile publication has collected data on 30 of the best-selling cars in the United States. The data are in a file called Automobiles( attached). The editor is particularly interested in the relationship between highway mileage and curb weight of the vehicles.

a) Develop a linear regression model where highway mileage is to be predicted using curb weight.

b) The editor just purchased a Cadillac Sedan DeVille which weighs 4,012 pounds. His previous car was a Toyota Camry which weighs 3,241 pounds. He wonders how much of a decrease in gas mileage he should expect. Provide the editor an idea of the maximum and minimum decrease in gas mileage he should expect. You should use a procedure which will allow you to be 90% confident of your answer.

c) Provide an estimate of the gasoline mileage the editor should expect from his newly purchased car. Suppose the estimate you just provided is the true average mpg for cars that weigh the same as the Cadillac. Cadillac advertises that the Sedan DeVille has a mileage rating of 26 mpg. Determine the percentile for the CeVille's mileage rating.

d) The individual from whom the editor purchased the Cadillac said that this car got exceptional gas mileage. He claimed that this particular car got 29 mpg. Construct an appropriate 95% interval estimate that would indicate whether the seller of the Cadillac was stretching the truth or not. Comment on the seller's veracity.

##### Solution Summary

One of the editors of a major automobile publication has collected data on 30 of the best-selling cars in the United States. The data are in a file called Automobiles( attached). The editor is particularly interested in the relationship between highway mileage and curb weight of the vehicles.

a) Develop a linear regression model where highway mileage is to be predicted using curb weight.

b) The editor just purchased a Cadillac Sedan DeVille which weighs 4,012 pounds. His previous car was a Toyota Camry which weighs 3,241 pounds. He wonders how much of a decrease in gas mileage he should expect. Provide the editor an idea of the maximum and minimum decrease in gas mileage he should expect. You should use a procedure which will allow you to be 90% confident of your answer.

c) Provide an estimate of the gasoline mileage the editor should expect from his newly purchased car. Suppose the estimate you just provided is the true average mpg for cars that weigh the same as the Cadillac. Cadillac advertises that the Sedan DeVille has a mileage rating of 26 mpg. Determine the percentile for the CeVille's mileage rating.

d) The individual from whom the editor purchased the Cadillac said that this car got exceptional gas mileage. He claimed that this particular car got 29 mpg. Construct an appropriate 95% interval estimate that would indicate whether the seller of the Cadillac was stretching the truth or not. Comment on the seller's veracity.

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