Question: Hi, I need help with my Economics homework using excel Automobiles Automobile Engine Size (liters) Horsepower Acura CL 3.2 225 Acura RL 3.5 225 Acura

Hi, I need help with my Economics homework using excel

Automobiles
Automobile Engine Size (liters) Horsepower

Acura CL 3.2 225
Acura RL 3.5 225
Acura TS-X 2.4 200
Audi A6 3.0 220
Audi A8 4.2 310
BMW 320i 2.2 168
BMW 325i 2.5 184
BMW 330i 3.0 225
BMW 540i 4.4 290
BMW 745i 4.4 325
BMW 760Li 6.0 438
Buick Custom Century 3.1 175
Buick Regal LS 3.8 200
Cadillac CTS 3.2 220
Cadillac Deville 4.6 275
Chevrolet Cavalier 2.2 140
Chevrolet Iimpala 3.4 180
Chrysler 300M 3.2 250
Chrysler Intrepid ES 3.5 234
Chrysler Intrepid SE 2.7 200
Chrysler Sebring LX 2.4 150
Dodge SX 2.0 132
Ford Focus 2.0 110
Honda Accord DX 2.4 160
Honda Accord LX 3.0 240
Honda Civic 1.7 115
Hyundai Accent 1.5 90
Hyundai Elantra 2.0 135
Hyundai Sonata GL 2.4 138

This example examines whether a larger engine has greater horsepower.

(a) Show the summary statistics of engine size and horsepower.

(b) Construct a scatter plot of automobile horsepower (horsepower on the vertical axis; engine size on the horizontal axis).

(c) Are engine size and horsepower positively correlated? Calculate their correlation coefficient.

(d) Determine the regression equation (dependent variable is HORSEPOWER) and engine size (explanatory variable is ENGINE SIZE).

(e) Plot the regression line (hint: use MS Excel's Add Trendline feature)

(d) Compute the goodness of fit (coefficient of determination). Explain what it means in this specific example.

(f) Is the coefficient on engine size statistically significant at a 5% significance level? Explain.

(g) If the engine size of a new model of car is 3.8, what is its predicted horsepower based on the regression?

(h) If the average engine size increases by 2 liters, how much is the horsepower expected to change?

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