A taxi company is interested in the relationship between mileage, measured in miles per gallon, and the
Question:
a. Construct a scatter diagram with Y as the vertical axis and X1 as the horizontal axis. Identify the points corresponding to male and female drivers, respectively.
b. Fit the regression model
Y = β0 + β1X1 + β2X2 + ε
and interpret the least squares coefficient, b2.
c. Compute the fitted values for each of the (X1, X2) pairs, and plot the fitted values on the scatter diagram. Draw straight lines through the fitted values for male drivers and female drivers, respectively. Specify the equations for these two straight lines.
d. Suppose gender is ignored. Fit the simple linear regression model, Y = β0 + β1X1 + ε, and plot the fitted straight line on the scatter diagram. Is it important to include the effects of gender in this case? Explain.
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