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Econometrics

analysis will recognize two-door, three-door and four-door automobiles. In this case, the definition of a door is any normal means in which a passenger enters the vehicle. This will not include hatchbacks, trunks or sunroofs. The variables representing this data will be the same number of doors. For example, the number 2 will represent a two-door vehicle and so on. Two-Door = 2Three-Door = 3Four-Door = 4The number of passenger doors is also expected to have a negative result on the dependent variable. The more doors, the bigger and heavier the automobile will be; therefore the more fuel it will consume and a lower Miles Per Gallon.Number of Cylinders in the Engine (Expected Negative Correlation):This variable will also be represented by dummy variables. The number of cylinders in the automobiles engine will be four, six and eight. The variables representing the cylinders will be the same number. For example, a six cylinder engine will be represented by 6 and so on. This will further help simplify the analysis. 4 Cylinder = 46 Cylinder = 68 Cylinder = 8The number of cylinders in the engine will have a negative correlation on the fuel economy variable. The more cylinders that engine has, the more fuel it will use; therefore the lower the Miles Per Gallon achievable. Engine Size in Liters (Expected Negative Correlation):This variable will be represented by the liter size of the engine. The liter size will vary from 1.8 to 5.9 liters. This information is easily obtained from an autos spec analysisThe liter size of the engine is expected to have a negative correlation will MPG. The liter size represents how much fuel intake is injected into the engine. Therefore, if the liter size of an engine is high, then the miles per gallon of the engine should be negatively affectedData Set Table 1: data set Makeweight (lbs.)# of doors# of cyclindersengine sizeMPGAcura 3.2 CL3470263.219Acura RSX269424227Audi A43252441.831Audi S43704462.723BMW 325345046...

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