Question: The data worksheet entitled FUELCON4 contains the following variables for all 50 states plus the District of Columbia. FUELCON ( y ): Per capita fuel

The data worksheet entitled "FUELCON4" contains the following variables for all 50 states plus the District of Columbia.

FUELCON (y):Per capita fuel consumption in gallons
DRIVERS (x1):The ratio of licensed drivers to private and commercial motor vehicles registered
HWYMILES (x2):The number of miles of federally funded highways
GASTAX (x3) :The tax per gallon of gasoline in cents
INCOME (x4):The average household income in dollars

Run the regression analysis with FUELCON as the dependent variable and the other four variables as independent variables and obtain the appropriate model diagnostic statistics: Use the Shapiro-Wilk teststatistic to test the assumption of the normality of the model residuals.

(a) What is being tested here? (Choose one)

The assumption of linearity.The assumption of normally-distributed disturbances. Whether there is a linear relationship between x and y.The assumption of constant variance.The assumption of independence. Whether all of the x variables are important in predicting y.


(b) Which hypotheses are being tested? (Choose one)

H0: β1 = 1.0
Ha: β1 ≠ 1.0H0: All of the x variables in the model are not important
Ha: Atleast one of the x variables is important H0: The model variance is constant
Ha: The model variance is not constantH0: Disturbances are normal
Ha: Disturbances are non-normalH0: β1 = 0
Ha: β1 ≠ 0


(c) State the decision rule.

Reject H0 if p < 0.10.
Do not reject H0 if p ≥ 0.10.Reject H0 if p > 0.10.
Do not reject H0 if p ≤ 0.10. Reject H0 if p < 0.05.
Do not reject H0 if p ≥ 0.05.Reject H0 if p > 0.05.
Do not reject H0 if p ≤ 0.05.


(d) What is the name of the test statistic? (Choose one)

Anderson-Darling's A2Shapiro-Wilk's W Test of Constant VarianceKolmogorov-Smirnov's DThe Partial F TestTest of Independence


(e) State the appropriate test statistic name, test statistic value, and the associated p-value (Enter the test statistic value to three decimal places, and the p-value to four decimal places).

---Select--- z A D F t W = , p ---Select--- < ≥ ≤ > =

(f) What conclusion can be drawn from the test result?

Do not reject H0.The assumption of normally-distributed disturbances has been met.Do not reject H0. The assumption of independence has been met. Reject H0. There is a linear relationship between x and y.Reject H0. The assumption of independence has not been met.Do not reject H0. There is not a linear relationship between x and y.Reject H0. The assumption of constant variance has not been met.Do not reject H0. The assumption of constant variance has been met.Reject H0. The assumption of normally-distributed disturbances has not been met.

FUELCONDRIVERSHWYMILESGASTAXINCOME
547.920.8511,8491824426
440.380.814,532830997
456.90.99,4551825479
530.081.077,94921.722912
426.210.7632,4781832678
474.780.7111,0152232957
432.440.923,8202541930
492.970.881,2602332121
461.550.9117,27213.628493
564.820.8116,9507.528438
336.970.921,0891628554
484.830.696,4662524257
406.990.819,7001932755
524.010.7410,2611527532
532.390.6110,0372027283
483.310.8110,4942128507
532.770.7710,30216.425057
513.80.778,9542024084
472.680.943,4742236385
463.460.896,38723.534950
436.570.97,2642138845
504.950.8416,9421929538
532.520.6612,5092032791
541.060.978,74718.421643
549.160.9213,5801728029
549.350.6810,4562723532
503.10.798,06724.528564
448.811.135,97624.7529860
541.670.872,40519.533928
465.520.899,15010.538153
504.770.899,65418.523162
296.441.118,9982235884
510.050.9713,63224.127418
580.320.667,4152125538
458.310.7416,8072228619
523.890.6811,1231724787
439.090.8510,1382428000
417.360.8718,4482630617
382.820.881,0372929984
557.530.929,2721624594
577.840.77,7532226301
506.30.8312,0362026758
502.170.9349,6782028486
430.530.877,31024.524202
555.780.992,1382027992
529.520.8114,45317.532295
446.630.8310,8022331582
466.310.945,39025.6522725
466.080.8313,08827.328911
715.550.677,8411428807
289.991.383912040498

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