Random Motors Project Submission: Name - Sanjana Shetty
Random Motors Project Submission: Name - Sanjana Shetty
Random Motors Project Submission: Name - Sanjana Shetty
Submission
Name – Sanjana Shetty
Q-1a) Formulate the null hypotheses to check whether the new models are
performing as per the desired design specifications.
(1-0.05= 0.95)
p-value for mileage =0.082
p-value for top speed =0.373
Q-3) You have learnt about the possible errors that might result from the
hypothesis tests. What type of error is more expensive for Random motors
based on the hypothesis they are testing? Why? Assume that you need to
refund all your customers if your cars deviate from specifications.
The type of error which is more Reason:
expensive:
Type 2 error is committed when you
fail to reject null hypothesis that is
Type 2 error is expensive for false.
Rocinante and Marengo
• Effect: Not provide the promised
specifications; the company will
suffer negative publicity
With an increase on the price Rocinante36 will have a higher impact on the sales,
negatively effecting the sales count compared to Marengo32.
Q-8) After developing the regression equation for both models (Rocinante and Marengo), if you
analyse the p values for coefficients in the regression results, you will notice that some of the
regression variables (top speed, mileage and price) are insignificant. Remove the insignificant
regression variables from your selection and rebuild the regression model using only significant
variables. Compare the Adjusted R square value for the new and old regression model. Do you
notice any change in Adjusted R square value? If yes, explain the reason for the change.