Question: In a data set about cars, we will create a model that predicts the fuel economy , measured in miles per gallon (mpg). The independent

In a data set about cars, we will create a model that predicts the fuel economy, measured in miles per gallon (mpg). The independent variables are

  • Weight of car (in thousand pounds)
  • Transmission (Automatic or Manual)

The output from the creation of a model to predict mpg is given below.

Variable Estimate of coefficient p-value
(intercept) 32 Less than 0.0001
weight (thousand pounds) -4 Less than 0.0001
Manual Transmission (dummy variable) 15 0.0016
weight : Manual Transmission -5 0.0010

What can we conclude from the model above?

Question 1 options:

On average, cars with manual transmissions have a higher fuel economy than cars of the same weight that have automatic transmissions.

An increase in weight by 1000 pounds will change the fuel economy about the same for cars with manual and automatic transmissions.

Both of the above can be concluded by the given model output.

None of the above.

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