5. Suppose someone claims that “smaller cars provide better values than larger cars.

” For the
data in this case, the Small Sedans represent the smallest type of car and the Upscale Sedans
represent the largest type of car. Does your analysis support this claim?

H0: smaller cars does not provide better values than larger cars

Ha: smaller cars provide better values than larger cars

Paired T-Test and CI: Size_Small Sedan, Size_Upscale Sedan

Paired T for Size_Small Sedan - Size_Upscale Sedan

N Mean StDev SE Mean

Size_Small Sedan 54 0.2407 0.4315 0.0587
Size_Upscale Sedan 54 0.3889 0.4921 0.0670
Difference 54 -0.148 0.787 0.107

95% CI for mean difference: (-0.363, 0.067)

T-Test of mean difference = 0 (vs ≠ 0): T-Value = -1.38 P-Value = 0.172

Since P value>0.05, Ho is not rejected, we conclude that smaller cars does not provide
better values than larger cars

6. Use regression analysis to develop an estimated regression equation that could be used to
predict the value score given the value of the Road-Test Score.
Regression Analysis: Value Score versus Road-Test Score

Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value

Regression 1 0.1447 0.14472 2.03 0.160
Road-Test Score 1 0.1447 0.14472 2.03 0.160
Error 52 3.7007 0.07117
Lack-of-Fit 26 2.0956 0.08060 1.31 0.251
Pure Error 26 1.6051 0.06173
Total 53 3.8454
Model Summary

S R-sq R-sq(adj) R-sq(pred)

0.266772 3.76% 1.91% 0.00%
Coefficients

Term Coef SE Coef T-Value P-Value VIF

Constant 0.902 0.319 2.83 0.007
Road-Test Score 0.00578 0.00406 1.43 0.160 1.00

Regression Equation

Value Score = 0.902 + 0.00578 Road-Test Score

7. Use regression analysis to develop an estimated regression equation that could be used to
predict the value score given the Predicted Reliability.

Regression Analysis: Value Score versus Predicted Reliability

Analysis of Variance

Source DF Adj SS Adj MS F-Value P-Value

Regression 1 1.5933 1.59330 36.79 0.000
Predicted Reliability 1 1.5933 1.59330 36.79 0.000
Error 52 2.2521 0.04331
Lack-of-Fit 3 0.1002 0.03341 0.76 0.522
Pure Error 49 2.1519 0.04392
Total 53 3.8454

Model Summary

S R-sq R-sq(adj) R-sq(pred)

0.208111 41.43% 40.31% 37.08%
Coefficients

Term Coef SE Coef T-Value P-Value VIF

Constant 0.763 0.101 7.52 0.000
Predicted Reliability 0.1733 0.0286 6.07 0.000 1.00

Regression Equation

Value Score = 0.763 + 0.1733 Predicted Reliability

8. What conclusions can you derive from your analysis?

• There is significant linear positive relationship between value score and predicted
reliability
• There is significant linear positive relationship between value score and road test score