In: Statistics and Probability
Currently, a manager is using a regression model that predicts gas mileage (in miles per gallon) based on the horsepower of a car and the car's weight (in pounds). She believes that the effect of HP on gas milage is affected by the weight and vice versa. Develop a regression model that includes horsepower, weight, and this new interaction effect to predict gas mileage. Complete parts (a) and (b).
MPG- 15.3,19.5,20.8,18.9,17.2,27.5,44.4,27.2,28.3,21.1
Horsepower-187,101,143,171,166,72,70,89,87,134
Weight-4757,3537,3227,4448,4296,3191,2106,2490,2605,3871
a. At the 0.01level of significance, is there evidence that the interaction term makes a significant contribution to the model?
Let the interaction variable be X3.
What are the null and alternative hypotheses for this test?
A.H0:β3=0
H1:β3>0
B.H0:β3≥0
H1:β3<0
C.H0:β3≠0
H1:β3=0
D.H0:β3≤0
H1:β3>0
E.H0:β3=0
H1:β3≠0
F.H0:β3=0
H1:β3<0
What is the p-value for this test?
p-value=
(Round to three decimal places as needed.)
What is the conclusion for this test?
Since the p-value for the interaction term is ___than α,____H0.
There____ enough evidence to conclude that the interaction term makes a significant contribution to the model.
b. Which regression model is moreappropriate, the original given model or the new model with the interaction term? Explain.
A.The new model is more appropriate because the interaction is not significant.
B.The new model is more appropriate because the interaction is significant.
C.The old model is more appropriate because the interaction is not significant.
D.The old model is more appropriate because the interaction is significant.
E.The new model is more appropriate because the coefficient of the interaction term is not equal to 0.
3)The data provided give the gasoline mileage (in miles per gallon) based on the horsepower of a car's engine and the weight of the car (in pounds). Using the data provided, determine the VIF for each independent variable in the model. Is there reason to suspect the existence of collinearity?
MPG- 15.3,19.9,20.5,18.4,17.5,27.2,44.8,27.9,28.4,21.2
Horsepower- 191,108,140,173,164,68,60,85,85,135
weight- 4724,3531,3223,4494,4297,3192,2111,2487,2606,3874
Determine the VIF for each independent variable in the model.
VIF 1=___
VIF 2=___
(Round to three decimal places as needed.)
Is there reason to suspect the existence of collinearity?
A.Yes. The VIF for each independent variable is less than 5.
B.No. The VIF for each independent variable is greater than 5.
C.Yes. The VIF for each independent variable is greater than 5.
D.No. The VIF for each independent variable is less than 5.
Using Minitab software, (Stat -> Regression -> Regression -> Fit Regression Model), we get the following output :
The correct hypotheses are - H0:β3 =0 against H1:β3 ≠0
The p-value for this test = 0.038
Since the p-value for the interaction term is greater than α = 0.01, fail to reject H0
There is not enough evidence to conclude that the interaction term makes a significant contribution to the model.
b) ans-> C.The old model is more appropriate because the interaction is not significant.
3. VIF 1 = 40.09 and VIF 2 = 16.8
C.Yes. The VIF for each independent variable is greater than 5.