- The variables that provide a non-random amount of variance to the mpg values in the dataset are vehicle_length and ground_clearance, as well as intercept, as shown by their very low p-values. In other words, those coefficients appear to be statistically significant, according to our results.
- The slope of vehicle_length and ground_clearance are not considered to be zero. They are 6.267, and 3.546, respectively, as shown on the summary. The other coeffiecients that have a random amount of variance have slopes that are closer to zero, except AWD, which has a slope of -3.411, but it is also considered to have a random amount of variance, with a p-value of 0.1852.
- This linear model appears to predict mpg of MechaCar prototypes effectively. The overall p-value is 5.35e-11, which is 0.0000000000535, or about 99.999999999% confidence that it is statistically significant, and not random.
In order to compare MechaCar to the performance of vehicles from other manufacturers, I would measure and test fuel efficiency in mpg of MechaCar and the competition. The null hypothesis is that MechaCar's fuel efficiency is equal to that of the competition (with a p-value of above 0.05). The alternative hypothesis is that MechaCar's fuel efficiency is not equal to that of the competition (with a p-value of 0.05 or lower). I would generate a summary table of the mean, median, variance and standard deviation mpg for MechaCar vehicles, and all other vehicles of all other manufacturer models to be compared. I would then generate a T-test to compare the sample mean of each lot of every manufacturer to be compared, including all the vehicles being compared on each lot.