Automotive manufacturers need a more in-depth analysis that involves fuel consumption statistics from some of the models
Question:
Automotive manufacturers need a more in-depth analysis that involves fuel consumption statistics from some of the models sold in the US. Their Research and Development departments need to know the relationship between engine sizes, CO2 emissions, and miles per gallon on city and highway. This analysis will contribute to the decision to reduce engine sizes and include electric-assisted systems in the powertrain or maintain current engine configurations for a certain number of years. Answer the following questions. Include any plots/graphs to support your answers.
1. Is there a strong or weak relationship between engine size and CO2 emissions? Explain.
2. What can the measurement of this response tell about the relationship in Question#1?
3. Does the engine size and MPG have a linear relationship? If not, can it be transformed into a linear relationship? Explain.
4. What can the measurement of the response tell about the relationship in Question#3?
5. Calculate assumed combined miles per gallon [(MPGcity + MPGhighway)/2]. With combined miles per gallon, what is the prediction for an MPGCombined given the engine size? 6. Based on the results of your analysis: a. Do you recommend including electric-assisted systems as part of the powertrain for the new generations of the models listed below?
b. Is the data provided enough to make solid conclusions for this analysis? Explain.
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw