Question 1 It is widely assumed that the average cost to produce a film is $60 million. A random sample of 15 action movies was selected and they had an average production cost of $62.3 million with a standard deviation of $3.25 million. At the 0.05 level of significance, can it be concluded that it costs more than average to produce an action movie?

Question 1

It is widely assumed that the average cost to produce a film is $60 million. A random sample of 15 action movies was selected and they had an average production cost of $62.3 million with a standard deviation of $3.25 million. At the 0.05 level of significance, can it be concluded that it costs more than average to produce an action movie?

Question 2

Suppose a fair six-sided die is tossed to see if it fair. We roll the die 300 times and observe the frequency of occurrence of each of the faces. Since the die contains six sides, we expect that the number on each side will occur 50 times. The following frequencies were observed:

Face value Occurrence

1       42

2       55

3       38

4       57

5       64

6       44

Conduct a Chi-sq Goodness of Fit test to see if the die should still be considered fair.

Question 3

An analyst wanted to analyze the relationship between the speed of a car (x) measured in mph and its gas mileage (y). As an experiment a car is operated at several different speeds and for each speed the gas mileage is measured. These data are shown below.

Speed  25  35  45  50  60  65  70

Gas Mileage  40  39  37  33  30  27  25

What is the dependent variable?
What is the independent variable?

Question 4

The following output was generated using statistical software.

                 Coefficients     Standard Error     t Stat       P-value 

Intercept   50.65625         1.891010513       26.79       0.13529

Speed       -0.353125        0.036201476      -9.754      0.00019

List the prediction equation for gas mileage based on speed.

What gas mileage is expected for a vehicle traveling 80 mph?

Is speed a good predictor of gas mileage based on the output? Explain your answer.