QMB 3200 Spring 2024 Project Assignment 2

Complete your work in this document in black type. Leave the existing document in the blue
type it is currently in and do not edit the document except to add your responses below each
prompt. Submit to Canvas as a single .doc or .docx file; files submitted in inaccessible formats
will not be graded. The assignment is due by Friday, March 8 at 5:00pm. There is a grace period
through Sun Mar 10 at 11:59pm during which you will not be penalized for late submission.
Assignments submitted after this point will be penalized 10% per day or portion of a day that it
is late, for up to three days. You will use your student data set (cars) to run all analyses.
NOTE: Make sure all your Printouts are legible without the need for a magnifying glass!

Part 1.
a. Run an ANOVA to compare the mean price of your three vehicle models. Insert a
screenshot of the Printout. (5 points)
b. Is there a significant difference between the means (just state yes or no)? (2 points)

Not.

c. Run a Tukey post hoc test to rank the means of the prices of the models (even if there
was not a significant difference). Insert a screenshot of your Printout. (5 points)

d. List your vehicle models (use vehicle names, not numbers!) in order from that with the
highest mean price to that with the lowest mean price (indicate any “ties”). (3 points)

MODEL Mean Minimum Maximum

FORD MUSTANG MACH-E 109873 85000 120000
LEAF 40225 38902 41300
FORD KUGA 33993 32000 35000
FORD PUMA 25635 24960 26000
SENTRA 24509 23560 25000
TRACKER 23964 23880 24000
BLAZER 23817 17668 65500
GROOVER 19010 18695 19900
MARCH 15962 13280 16500
PART 2.
a. Imagine that you have reason to believe that the majority of used vehicles for sale were
newer cars. Test this assumption with a binomial test of proportions. Insert your
Printout. (5 points).

b. Due to the glitch in the software (as discussed in class) you will also need to include a
screenshot from Statistix 10 from before you ran the analysis. For further details, refer
to the video How to do Project Assignment 2. This does not count toward your grade,
but without it you will receive zero points for Part 2. C.
 c. Interpret the results of the above analysis. (3 points)
Proportion: The proportion of successes in the sample is 34.67% (0.34667).
Null and alternative hypotheses: The null hypothesis (H0) establishes that the population
proportion is equal to 0.5. The alternative hypothesis (H1) is that the population proportion is
not equal to 0.5.
P-value: The p-value is a measure of the evidence against the null hypothesis. Here, the p-
value is about 0.0079 without correction and about 0.0111 with correction. This suggests that
there is significant evidence to reject the null hypothesis.
Exact Test: The p value of the exact test is approximately 0.0106.
In summary, this result suggests that there is significant evidence to reject the null hypothesis
that the population proportion is equal to 0.5, in favor of the alternative hypothesis that the
population proportion is not equal to 0.5.
PART 3.
a. Run a simple linear regression of your student data set using the price of the vehicle as
the dependent variable (y) and the mileage as the independent variable (x). Insert your
Printout. (5 points)
b. Is this a useful model? Interpret the p-value based on a one-tailed test. (2 points)

Interpretation of the p value based on a one-tailed test suggests that the p value for the
coefficient on the mileage variable is 0.0079. This indicates that there is significant
evidence to reject the null hypothesis that the coefficient of the mileage variable is equal
to zero. Therefore, the model is useful in predicting the price of the vehicle based on
mileage.

c. What is the y-intercept of the model? (2 points)

The value of the model intercept (y-intercept) is 31948.6.
d. Can the y-intercept be practically interpreted in this case (yes or no)? (2 points)
Yes, it can be interpreted practically. The model intercept represents the predicted price
of a vehicle when the mileage is zero

e. What is the slope of the model? (2 points)

The slope of the model is 0.80685

f. What is the R² of the model? (2 points)

The coefficient of determination (R²) of the model is 0.0927
g. Interpret the R² of this model. (2 points)
The R² indicates that approximately 9.27% of the variability in vehicle price can be explained
by the simple linear regression model using mileage as a predictor. Although the R² is low, it
suggests that the model has limited ability to explain variability in vehicle price.