Question

Regression Model = 63.4 - 10.99*x1 - 0.24*x2 + 0.05*(x1 * x2), where x1 = car's weight, x2 = horsepower.

Which car would you expect to have the best MPG based on weight and horsepower?

a. A 2 (1000s lbs) car with 225 horsepower

b. A 2.5 (1000s lbs) car with 200 horsepower

c. A 3 (1000s lbs) car with 150 horsepower

d. A 3.5 (1000s lbs) car with 100 horsepower

Answer 1

Solution: In the given question, in order to find the best MPG based on weight and horsepower, we put each car's weight and horsepower in the placeof x1 and x2 in the regression model and find the MPG which is the highest.

For option a) 63.4 - 10.99*2 - 0.24*225 + 0.05*(2 * 225) = 9.92

For option b) 63.4 - 10.99*2.5 - 0.24*200 + 0.05*(2.5 * 200) = 12.925

For option c) 63.4 - 10.99*3 - 0.24*150 + 0.05*(3 * 150) = 16.93

For option d) 63.4 - 10.99*3.5 - 0.24*100 + 0.05*(3.5 * 100) = 18.435

Thus, option (d), has the highest MPG.

So, the 4th car is expected to have the best MPG based on weight and horsepower