Week 5 Discussion

Using the value of the weight, the company can use the data to predict the miles per gallon and utilize the data to correctly charge the customer the per-mile charge in the rental agreement. 4. What is the slope coefficient? Is this coefficient significant at a 5% level of significance (alpha=0.05)? (Hint: Check the P-value, , for weight in the Python output.) See Step 4 in the Python script. From the python script, we get the following information: The slope efficiency is B 1 =− 5.9137 The p-value given by the code is P > | t | = 0.000 The coefficient significance is at a 5% level of significance. Therefore H 0 : B 1 = 0 H 1 : B 1 ≠ 0 The coefficient is significant due to the p-value being less than the significant level. Therefore, we will reject the null hypothesis because the p-value of 0.000 is less than the significance level of . OLS Regression Results =========================================================================== === Dep. Variable: mpg R-squared: 0.793 Model: OLS Adj. R-squared: 0.786 Method: Least Squares F-statistic: 107.5 Date: Fri, 28 May 2021 Prob (F-statistic): 4.31e-11 Time: 14:11:15 Log-Likelihood: -72.886 No. Observations: 30 AIC: 149.8 Df Residuals: 28 BIC: 152.6 Df Model: 1 Covariance Type: nonrobust =========================================================================== === coef std err t P>|t| [0.025 0.975] --------------------------------------------------------------------------- ---