1.

The Tire Rank, an online distributor of tires and wheels, conducts extensive testing to provide
customers with products that are right for their vehicle, driving style, and driving conditions. In
addition, The Tire Rack maintains an independent consumer survey to help drivers help each
other by sharing their long-term tire experiences (The Tire Rack website, August 1, 2016).  The
survey use 1 to 10 rating scale with 10 as the highest rating for 18 high-performance all-season
tires. The tread wear variable rates quickness of wear based on the driver’s expectations; the dry
traction variable rates the grip of a tire on a dry road; the steering variable rates the tire’s steering
responses; and the buy again variable rates the driver’s desire to purchase the same tire again. 
These data were analyzed using multiple regression analysis, which results of which are shown
on the table below.  Interpret the results. 

Regression Statistics  

Multiple R 0.96956582  

R Square 0.94005788  

Adjusted R Square 0.926225083  

Standard Error 0.57191668  

Observations 17  

ANOVA

  df SS MS F Significance F

Regression 3 66.68549411 22.2285 67.95862652 3.36066E-08

Residual 13 4.252152953 0.327089

Total 16 70.93764706      

  Coefficients Standard Error t Stat P-value

Intercept -10.3397728 2.126333551 -4.86272 0.000310027

tread wear 1.200056035 0.146227731 8.206761 1.68927E-06

dry traction 0.621872989 0.504775274 1.23198 0.239775859

steering 0.325237913 0.424731891 0.765749 0.457504454

Null Hypothesis:
As shown on the ANOVA table, reject the null hypothesis, The significance F-value of
0.0000000336066 ≥ 0.00 is less than 0.05 level of significance which means that one of the
following independent variables: tread wear, dry traction, and steering showcase a significant
linear relationship with the high-performance all-session tire rating.

Determine which independent variable has a significant relationship:

If the P-value is less than the 0.05 level of significance, it indicates that a particular independent
variable has a significant linear relationship with the dependent variable. In particular, one of the
independent variables have a significant linear relationship. This is based on the following data:
tread wear with a P-value of 0.00000168927 ≥ 0.00 which is less than the 0.05 level of
significance, for dry traction with a P-value of 0.239775859 ≥ 0.24 which is greater than 0.05
level of significance, and the last variable, steering, with a P-value of 0.457504454 ≥ 0.46 which
is also greater than 0.05 level of significance.
Multiple Linear Regression Equation or Model:
Y = -10.34 + 1.20x1 + 0.62 x2 + 0.33 x3
This model indicates that the high-performance all-season tire rating (Y) is 1.20 for every change
in tread wear (x1) when the other independent variable is constant, while the change in dry
traction (x2) is 0.62 when the other independent variable are constant as well, on the other hand,
the change in steering (x3) is 0.33 when the other independent variables remain constant.
Furthermore, the high-performance all-season tire (Y) is -10.34 if all tread wear, dry traction, and
steering are zero.
Extent of Linear Relationship of the Independent and Dependent Variables:
The independent variables: thread wear, dry traction, and steering showcase a very high positive
linear relationship with the high-performance all-season tire rating based on its multiple r-value
of 0.9696. Similarly, the multiple r2 suggests that 94.0058% of the variation in the high-
performance all-season tire can be explained by its interaction with the variables: tread wear, dry
traction, and steering. In addition, the remaining 5.9942% were caused by unexplained factors or
factors which were not included in the study.

2. In testing 10 sedans, an automobile publication rated each on 13 different characteristics,

including ride, handling, and driver comfort. Each vehicle also received an overall rating. 
The data were recorded, and multiple regression analysis was performed on it.  The table
below shows the results of the analysis.  Interpret the result.  What is the estimated overall
rating for a vehicle that scores 6 on ride, 9 on handling, and 7 on driver comfort?

Regression Statistics  
 Multiple R 0.818288937  

R Square 0.669596785  

Adjusted R Square 0.504395177  

Standard Error 3.099875295  

Observations 10  

ANOVA

  df SS MS F Significance
F

Regression 3 116.8446389 38.94821 4.05320986 0.068370032

Residual 6 57.65536105 9.609227

Total 9 174.5      

  Coefficients Standard t Stat P-value  

Error

Intercept 46.74070022 15.53545447 3.00864 0.023741891  

7

ride 3.463894967 1.157780465 2.99184 0.024262446  

1

handling 3.915754923 1.30102027 3.00975 0.023707941  

7

driver -1.90809628 1.294945434 -1.4735 0.191049531  

comfort

Null Hypothesis:
As shown on the ANOVA table, do not reject the null hypothesis. The significant F-Value of
0.068370032 is greater than 0.05 level of significance which means that at least one of the following
independent variables: riding, handling, and driver comfort showcase a significant linear relationship with
the overall rating for a vehicle.
Determine which independent variable has a significant relationship:
All the variables provided, ride (x 1) and handling (x2), have p-values of 0.024262446 and 0.023707941
respectively, which are less than 0.05 level of significance. This indicates that the two abovementioned
independent variables have a significant linear relationship with the overall rating for a vehicle. More so,
it can be seen that an increase on the number of ratings of the variables: ride and handling directly affects
the overall rating for a vehicle. On the contrary, the variable driver comfort (x 3) has a p-value of
0.191049531 which is greater than 0.05 level of significance which suggests that this independent
variable does not have a significant linear relationship with the overall rating for a vehicle.
Multiple Linear Regression Equation or Model:
Y = 46.74 + 3.46x1 + 3.92x2 – 1.91x3
The equation or model indicates that if all independent variables: ride, handling, and driver comfort are
zero, then the overall rating for a vehicle is 46.74. Moreover, if all other independent variables are
constant, 3.46 is the change on the overall rating for a vehicle for each unit that change in the variables,
ride. Furthermore, another indication shows if all other independent variables are constant, 3.92 is the
change on the overall rating for a vehicle for each unit that changes in the variables, handling. And lastly,
there is also indication that shows when all other independent variables are constant, -1.91 is the change
on the overall rating for a vehicle for each unit that changes in the variables, driver comfort.
What is the estimated overall rating for a vehicle that scores 6 on ride, 9 on handling, and 7 on
driver comfort?
Y = 46.74 + 3.46x1 + 3.92x2 – 1.91x3
Y = 46.74 + 3.46(6) + 3.92(9) – 1.91(7)
Y = 89.41

Extent of Linear Relationship of the Independent and Dependent Variables:

The independent variables ride, handling, and driver comfort showcases a high positive correlation based
on its multiple r-value of 0.8183. Similarly, the multiple r 2 suggests that 66.96% of the overall rating for a
vehicle can be explained by its interaction with the variables ride, handling, and driver comfort.
Moreover, the remaining 33.04% were caused by unexplained factors or factors which were not included
in the study.