YUSI, REYNE L.

A223
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

As shown on the ANOVA table, reject the null hypothesis, significance F-value of 0.0000000336066
is less than .05 level of significance, which means at least one of the independent variables (tread wear,
dry traction and steering) has significant linear relationship with18 high-performance all-season tires.
Tread wear (X1) has a p-value (0.00000168927) which means the said variable has a significant
linear relationship with the rating of the 18 high-performance all-season tires. This suggests that an
increase in the tread wear is also an increase in the rating.
Multiple linear regression equation or model = Y = -10.3397728 + 1.200056X1
YUSI, REYNE L.
A223
"This model means that the unit change in Tires rating (Y) is 1.200056 for every unit change in tread
wear (X1) when the other independent variables are constant; In addition, the estimated value of travel
time in hours (Y) is -10.3397728 if tread wear zero (0)."
The tread wear very strong positive linear relationship with the rating of 18 high-performance all-
season tires based on its multiple r-value of 0.0.96957. Likewise, the multiple r² suggests that 94% of
the variation in the rating of 18 high-performance all-season tires can be explained by its interaction
with the tread wear, and that 6% 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 3.008647 0.023741891
ride 3.463894967 1.157780465 2.991841 0.024262446
handling 3.915754923 1.30102027 3.009757 0.023707941
driver -1.90809628 1.294945434 -1.4735 0.191049531
comfort
YUSI, REYNE L.
A223
"As shown on the ANOVA table, do not reject the null hypothesis, significance F-value of
0.068370032 is greater than .05 level of significance, which means none of the independent variables
(ride, handling and driver comfort) has significant linear relationship withthe overall rating for a vehicle."
"Both ride (X1) and handling (X2) have p-values (0.024262 and 0.023708 respectively) which
are less than .05 level of significance, which means both independent variables have significant linear
relationships with the overall rating for a vehicle. This suggests that an increase on the ride and on the
handling, overall rating of vehicle increases as well."
Multiple linear regression equation or model = Y = 46.4707 + 3.463895X1 + 3.915755X2
"This model means that the unit change in overall rating of vehicle (Y) is 3.463895 for every
unit change in ride (X1) when the other independent variables are constant; the unit change in
overall rating of vehicle (Y) is 3.915755 for every unit of handling (X2) when the other independent
variables are constant; and the unit change in overall rating of vehicle (Y) is -1.908096 for every unit of
driving comfort (X3) when the other independent variables are constant. In addition, the estimated value
of overall rating of vehicle (Y) is 46.4707 if ride, handling and driving comfort are zero (0)."
What is the estimated overall rating for a vehicle that scores 6 on ride, 9 on handling, and 7 on driver
comfort?
Y= 46.4707 + 3.463895X1 + 3.915755X2 + -1.908096X3
Y= 46.4707 + 3.463895 (6) + 3.915755 (9) + -1.908096 (7)
Y= 89.1392
The ride and handling have high positive linear relationship with overall rating of vehicle based
on its multiple r-value of 0.818289. Likewise, the multiple r² suggests that 66.96% of the variation in
overall rating of vehicle can be explained by its interaction with the ride, handling and driving comfort,
and that 33.14% were caused by unexplained factors or factors which were not included in the study.