In: Statistics and Probability
An engineer wanted to determine how the weight of a car (kilograms), ?, affects fuel consumption (kilometers per litre), ?. The weights and fuel consumption for a random sample of 10 cars were recorded. Refer to the regression results from Excel.
Regression Statistics
| 
 Multiple R  | 
 0.84157604  | 
| 
 R Square  | 
 0.708250231  | 
| 
 Adjusted R Square  | 
 0.671781509  | 
| 
 Standard Error  | 
 0.712010044  | 
| 
 Observations  | 
 10  | 
| 
 Coefficients  | 
 Standard Error  | 
 t-Stat  | 
 P-Value  | 
 Lower 95%  | 
 Upper 95%  | 
|
| 
 Intercept  | 
 15.883033  | 
 1.680071  | 
 9.453785  | 
 0.000013  | 
 12.008782  | 
 19.757285  | 
| 
 X-Variable 1  | 
 -0.004384  | 
 0.000995  | 
 (?)  | 
 0.002266  | 
 -0.006679  | 
 -0.002090  | 
a) Write the equation of the estimated least-squares regression line.
b) Test whether a linear relationship exists between weight of a car and fuel consumption at the ? = 0.01 level of significance. Use the critical value method.
c) Use the Excel output to write a 95% confidence interval for the slope of the true least-squares regression line. Interpret the result. Write a descriptive statement that could be easily understood by someone who is not in this statistics class.
d) A 95% prediction interval for ? = 1900 is 5.83 to 9.28. Interpret this result. Write a descriptive statement that could be easily understood by someone who is not in this statistics class.
Please be very clear with b the Hypothesis Test using critical value method. That is where I am having confusion.