Multiple regression with dummy variables

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Multiple regression with dummy variables

In this project, you will learn how to run and interpret an estimated multiple regression model with a dummy variable. You will be given a data set called “Auto MPG Data Set” which you can download in “Table of Contents – Project 3” in sakai. The data set contains 391 samples and seven variables: six continuous variables mpg, cylinders, displayment, horsepower, weight, acceleration and one dummy variable bin year. The dummy variable bin year equals 1 for vehicles with model year before 1976 and 0 for those with model year in or after 1976. The goal of the analysis is to develop a regression model for predicting mpg using the remaining variables. That is, the response variable (y) is mpg and the explanatory variables (x) are cylinders, displayment, horsepower, weight, acceleration, bin year.

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