The Department of Energy and the U.S. Environmental Protection Agency provide fuel efficiency data for cars and trucks. The DATAfile named 2012FuelEcon provides a portion of the data for 309 cars. The column labeled Manufacturer shows the name of the company that manufactured the car; the column labeled Displacement shows the engine's displacement; the column labeled Drive identifies the type of drive (F for front wheel, R for rear wheel, and A for all wheel); and the column labeled Hwy MPG shows the fuel efficiency rating for highway driving in terms of miles per gallon.
a. Develop an estimated regression equation that can be used to predict the fuel efficiency for highway driving given the engine's displacement. Test for significance using α = 0.01. Enter negative value as a negative number.
b. Consider the addition of a dummy variable FuelPremium, where the value of FuelPremium is 1 if the required or recommended type is premium gasoline and 0 if the type of fuel is regular gasoline. Develop the estimated regression equation that can be used to predict the fuel efficiency for highway driving given the engine's displacement and the dummy variable FuelPremium. Enter negative value as a negative number.
c. Using α = 0.01, test whether the addition of the dummy variable is significant.
d. Consider the addition of the dummy variables FrontWheel and RearWheel. The value of FrontWheel is 1 if the car has front wheel drive and 0 otherwise; the value of RearWheel is 1 if the car has rear wheel drive and 0 otherwise. For all-wheel drive both FrontWheel and RearWheel are 0. Develop the estimated regression equation that can be used to predict the fuel efficiency for highway driving given the engine's displacement, the dummy variable FuelPremium, and the dummy variables FrontWheel and RearWheel. Enter negative value as a negative number.
e. For the estimated regression equation developed in part (d), test for overall significance and individual significance using α = 0.01. If the p-value corresponding to F is less than 0.01, conclude there is a significant overall relationship. If the p-values for each independent variable are also less than 0.01, conclude each independent variable is individually significant.