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DATA IN COMMENT BELOW In what follows use any of the following tests/procedures: Regression, multiple regression,...

DATA IN COMMENT BELOW

In what follows use any of the following tests/procedures: Regression, multiple regression, confidence intervals, one sided T-test or two sided T-test. All the procedures should be done with 5% P-value or 95% confidence interval.Some answers are approximated, choose the most appropriate answer. Open Cars04 data. SETUP: Is it true that average (retail) cost for the cars with 6 cylinders is higher than $35000? Given the data your job is to help answer this question.

I. What test/procedure did you perform? (6.66 points)

  • a. One sided T-test
  • b. Two sided T-test
  • c. Regression
  • d. Confidence interval

II. Statistical interpretation? (6.66 points)

  • a. Since P-value is small we are confident that the slope is not zero.
  • b. Since P-value is small we are confident that the averages are different.
  • c. Since P-value is too large the test is inconclusive.
  • d. None of these.

III. Conclusion? (6.66 points)

  • a. Yes, we can confirm that this was a reasonable claim.
  • b. No, we cannot confirm that this was a reasonable claim.
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Answer #1

I) answer: a) One sided T-test

II) Answer: d) None of these.

III) Answer b) No, we cannot confirm that this was a reasonable claim.

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