Question: {** Note : Some variables require transformation. For 8.4-8.5, use log(y), log(x1) and log(x10). For 8.16, use the squared root of Inhibit.}

Consider the automobile gasoline mileage data in Table B.3.

1. Build a linear regression model relating gasoline mileage y to engine displacement x1 and type of transmission x11.  Does the type of transmission significantly affect the mileage performance?
2. Modify the model developed in part a to include an interaction between engine displacement and the type of transmission.  What conclusions can you draw about the effect of the type of transmission on gasoline mileage?  Interpret the parameters in this model.

y= Miles/gallon

x1=Displacement(cubic in.)

x2=Horsepower (ft-lb)

x3=Torque (ft-lb)

x4=Compression ratio

x5=Rear axle ratio

x6=Carburetor (barrels)

x7=No. of transmission speeds

x8=Overall length (in.)

x9= Width (in.)

x10= Weight (lb)

x11=Type of transmission (A automatic; M manual)

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Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document