Question

This project is assigned to give you the chance to apply the knowledge that you have acquired in statistics to our Global Society. The following data has been collected for you and you are going to look at the possible relationships and make some decisions that might impact your life based on the outcomes.

Use the following data in this project. The data represents the Total Number of Alternative-Fueled Vehicles in use in the United States (source:  US Department of Energy:  http://tonto.eia.doe.gov/aer/)

Year	Number of Alternative-Fueled Vehicles in US
2000	394,664
2001	425,457
2002	471,098
2003	533,999
2004	565,492
2005	592,125
2006	634,562
2007	695,766

A.) Construct a scatter diagram of year (x) vs number of Alternative-fueled vehicles in US (y). Do these variables appear to have a relationship? Write 2 or 3 sentences describing the relationship or lack of a relationship. Explain your reasoning. (9 points for graph and 9 points for description of relationship or lack of relationship)

B.)

Description of the relationship of data:_____________________________________

C.) Find the correlation and regression lines for the data above.

r= _______________________ (5 points)

= _______________ x+ _______________ (5 points)

D.) Do the variables have significant correlation? For full credit, you must show each step of the hypothesis test. Use the 0.05 significance.  (18 points total)

E.) In 2008, the price of gas dropped drastically and hit a low average of $1.59 for the nation.  What effect do you think this will have on the alternative-fuel car sales, if any?  Do you think that this would affect the number of alternative-fueled vehicles used in the United States? Do you think that it would follow the same pattern as before 2008? Write 2 or 3 sentences explaining how you think the new vehicles will affect the number of alternative-fueled vehicles in the United States. (18 points)

F.) Use your regression equation to predict the number of alternative-fueled vehicles used in the United States in 2010. Assume that the pattern remains the same after the introduction of the electric-gas vehicles. Show your work. (18 points)

G.) Search online to find some evidence for or against your opinion in part e. Give the information that you found and state the URL to the data. Was your prediction correct or incorrect? Why do you think that happened? Write 2 or 3 sentences summarizing the information that you found and explain why you think that happened. Be sure to answer each question. (18 points)

Answer 1

(A) please find the scatterplot

(B) yes there is relationship, as the points on looking on a straigth lile ( increasing trend)

(C)r=0.9955

y=a+bx=349084+42236*x

here we take year 2000 as x=1, and we regress y=a+bx

following regression analysis has been done using ms-excel

(D) since the t-value of the slope b is 25.9 and corresponding p-value is less than typical alpha=0.05, so we reject the null hypothesis of correlation between x and y is zero. so there is linear relationship

(F) for year 2010 the x=11, so y=349084+42236*11=813680

Regression Statistics
Multiple R	0.99556
R Square	0.991141
Adjusted R Square	0.989664
Standard Error	10564.88
Observations	8
ANOVA
	df	SS	MS	F	Significance F
Regression	1	7.49E+10	7.49E+10	671.2482	2.18E-07
Residual	6	6.7E+08	1.12E+08
Total	7	7.56E+10
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	349084	8232.087	42.40528	1.15E-08	328940.8	369227.2
X Variable 1	42235.87	1630.196	25.90846	2.18E-07	38246.92	46224.82