Description
The spreadsheet “hw3_car_data.csv” contains the following variables:
Variable name
Variable meaning
foreign
1 if foreign, 0 otherwise
mpg
Gas mileage (miles per gallon)
cylinders
Number of cylinders
displacement
Engine displacement (cubic inches)
hp
Horse power
weight
Vehicle weight (pounds)
acceleration
Maximum acceleration (ft/s2)
modelyr
Model year
origin
Continent of origin. 1=North America; 2=Europe; 3=Asia;
name
Vehicle name
Modyr70-82
Binary variable for model year
I. [75 points total] Using the given data, estimate a logistic regression model to explain “foreign” as a function of selected explanatory variables, including binary variables for model year (Think about your model!).
To earn credit, please solve the following questions using R:
[15 points] Generate summary statistics for these variables (including min, max, mean, standard deviation, median, 25th and 75th quartiles) and interpret the results;
[15 points] State and justify your binary logit model explaining “foreign”;
[10 points] Estimate a binary logit model that includes binary variables for model year;
[25 points] Summarize your results in a table and interpret them (odds ratios are convenient); 5. [10 points] Discuss goodness-of-fit measures;
