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A research analyst for an oil company wants to develop a model to predict miles per gallon based on highway speed. An experiment is designed in which a test car is driven at speeds ranging from 10 miles per hour to 75 miles per hour.
a) Set up a scatter diagram for speed and miles per gallon.
b) Apply simple regression analysis, and then interpret the meaning of the slope b1 in this problem.
c) Interpret the meaning of the regression coefficient b0 in this problem.
d) Determine the coefficient of determination, r2, and interpret its meaning.
e) How useful do you think this regression model is for predicting mileage?
(i) Test for the existence of regression (the F-test). Carefully de ne the null and alternative hypothesis, and explain the result of any R output you obtain. (ii) Which of the
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