The problem is assigned to give you the chance to apply the knowledge that you have acquired in statistics to our Global Society. The following data has been collected for you and you are going to look at the possible relationships and make some decisions that might impact your life based on the outcomes.
Use the following data in this project. The data represents the Total Number of alternative-Fueled Vehicles in use in the United States (source: US Department of Energy: http://tonto.eia.doe.gov/aer/)
a. Construct a scatter diagram of year (x) vs number of Alternative-fueled vehicles in US (y). Do these variables appear to have a relationship? Write 2 or 3 sentences describing the relationship or lack of a relationship. Explain your reasoning.
b. Find the correlation and regression lines for the data above.
c. Do the variables have significant correlation? For full credit, you must show each step of the hypothesis test. Use the 0.05 significance.
d. In 2008, the price of gas dropped drastically and hit a low average of $1.59 for the nation. What effect do you think this will have on the alternative-fuel car sales, if any? Do you think that this would affect the number of alternative-fueled vehicles used in the United States? Do you think that it would follow the same pattern as before 2008? Write 2 or 3 sentences explaining how you think the new vehicles will affect the number of alternative-fueled vehicles in the United States.
e. Use your regression equation to predict the number of alternative fueled vehicles used in the United States in 2010 assuming that the pattern remains the same after the introduction of the electric-gas vehicles. Show your work.