Assignment 1 15 marks

An American consumer organization is currently examining the relationship among several

variables including gasoline mileage as measured by miles per gallon; the horsepower of the car’s
engine and the weight of the car (in pounds). A sample of 50 recent car models was selected and
the results recorded. (provided in auto.xlxs)

(a) Using the sample data attached, calculate the sample mean and standard deviation for the
variables: -
1. Miles per gallon (MPG)
Answer: Sample Mean: 28.542
Standard deviation: 8.171430819
2. Horsepower
Answer: Sample Mean: 90.84
Standard deviation: 27.25867022
3. Weight (in pounds)
Answer: Sample Mean: 2756.52
Standard deviation: 635.0509939

(b) Is there any evidence of skewness in the data sets? Which data set displays greatest skewness?
Answer:
MPG Horsepower Weight
Skewness 0.320803704 Skewness 1.026178006 Skewness 0.360932902

Horsepower data display greatest skewness

(c) Using the sample data on MPG, calculate the sample proportion of vehicles whose fuel
economy exceeds 37 mpg and its corresponding standard deviation.
Answer: MPG economy exceeds 37mpg –
43.1
41.5
46.6
39.1
44.6
38
38.1
39.4
Using Excel:
Mean 41.3
Standard
Deviation 3.203569438

Using Calculation:
MPG>37 xi-x^ (xi-x^)2
43.1 1.8 3.24
41.5 0.2 0.04
46.6 5.3 28.09
39.1 -2.2 4.84
44.6 3.3 10.89
38 -3.3 10.89
38.1 -3.2 10.24
39.4 -1.9 3.61
Sum 71.84
Sum/n-1 10.26286
SQRTt 3.203569
Sample
SD 3.203569

(d) Indicate all possible relationship between the variables and comment on it. (You may use
scatter diagram or Karl Pearson’s correlation coefficient)
Answer:
Relationship Value correlation

MPG and
Horsepower -0.7881775 Negative
MPG and
Weight -0.8248086 Negative

Horsepower
and Weight 0.74187351 Positive

(e) Using the complete data set and using simple ordinary least squares regression formulae
develop two models to explain the behavior of gasoline mileage (Miles per gallon) as a function
of their-
(i) Horsepower
(ii) Weight

Which model best describes the behavior of gasoline mileage? Explain your reasons here.

Answer: Mileage and horsepower

 b1 b0=y^-b1*x^
-2.629242037 165.8838262 y^=165.88-2.63x

Mileage and Weight

b1 b0=y^-b1*x^
-64.10083519 4586.086038 y^=4586.08-64x