Analysis of Miles per Gallon between Automatic Transmission and Manual Transmission

Executive Summary:

Here it is assumed that I work for Motor Trend, a magazine about the automobile industry.With regards to this automobile industry, Looking at a data set of these collection of cars, We will be exploring the relationship between a set of variables and miles per gallon (MPG) (outcome).The dataset for this particular project is from the 1974 Motor Trend US magazine, and contains details of the fuel consumption,ten measurements of automobile design and performance for 32 automobiles (1973–74 models).We use regression models and exploratory data analyses to mainly explore how automatic (am = 0) and manual (am = 1) transmissions features affect the MPG feature. We are particularly interested in the following two questions:

“Is an automatic or manual transmission better for MPG?”

“Quantifying the MPG difference between automatic and manual transmissions”

To answer these two questions we make use of various analyses including t test, anova and others.Then, based on the results we draw conclusions from it while determining answers to the above two questions. First step involves loading the data and looking at the summary.

library(datasets)
data(mtcars)
summary(mtcars)
##       mpg             cyl             disp             hp       
##  Min.   :10.40   Min.   :4.000   Min.   : 71.1   Min.   : 52.0  
##  1st Qu.:15.43   1st Qu.:4.000   1st Qu.:120.8   1st Qu.: 96.5  
##  Median :19.20   Median :6.000   Median :196.3   Median :123.0  
##  Mean   :20.09   Mean   :6.188   Mean   :230.7   Mean   :146.7  
##  3rd Qu.:22.80   3rd Qu.:8.000   3rd Qu.:326.0   3rd Qu.:180.0  
##  Max.   :33.90   Max.   :8.000   Max.   :472.0   Max.   :335.0  
##       drat             wt             qsec             vs        
##  Min.   :2.760   Min.   :1.513   Min.   :14.50   Min.   :0.0000  
##  1st Qu.:3.080   1st Qu.:2.581   1st Qu.:16.89   1st Qu.:0.0000  
##  Median :3.695   Median :3.325   Median :17.71   Median :0.0000  
##  Mean   :3.597   Mean   :3.217   Mean   :17.85   Mean   :0.4375  
##  3rd Qu.:3.920   3rd Qu.:3.610   3rd Qu.:18.90   3rd Qu.:1.0000  
##  Max.   :4.930   Max.   :5.424   Max.   :22.90   Max.   :1.0000  
##        am              gear            carb      
##  Min.   :0.0000   Min.   :3.000   Min.   :1.000  
##  1st Qu.:0.0000   1st Qu.:3.000   1st Qu.:2.000  
##  Median :0.0000   Median :4.000   Median :2.000  
##  Mean   :0.4062   Mean   :3.688   Mean   :2.812  
##  3rd Qu.:1.0000   3rd Qu.:4.000   3rd Qu.:4.000  
##  Max.   :1.0000   Max.   :5.000   Max.   :8.000

Now we will look at the various variables in this data set followed by a glance into it’s contents

names(mtcars)
##  [1] "mpg"  "cyl"  "disp" "hp"   "drat" "wt"   "qsec" "vs"   "am"   "gear"
## [11] "carb"
head(mtcars)
##                    mpg cyl disp  hp drat    wt  qsec vs am gear carb
## Mazda RX4         21.0   6  160 110 3.90 2.620 16.46  0  1    4    4
## Mazda RX4 Wag     21.0   6  160 110 3.90 2.875 17.02  0  1    4    4
## Datsun 710        22.8   4  108  93 3.85 2.320 18.61  1  1    4    1
## Hornet 4 Drive    21.4   6  258 110 3.08 3.215 19.44  1  0    3    1
## Hornet Sportabout 18.7   8  360 175 3.15 3.440 17.02  0  0    3    2
## Valiant           18.1   6  225 105 2.76 3.460 20.22  1  0    3    1

Our first step is to look at MPG for both Automatic Transmission and Manual Transmission an decide which is better. Now

boxplot(mpg~am, data = mtcars,
        xlab = "Transmission",
        ylab = "Miles per Gallon",
        col='blue',
        main = "MPG by Transmission Type",
        names = c("Automatic", "Manual"))

From this box plot we can pretty much say that Manual Transmission is better than Automatic transmission. But we are going to do that in a methodical fashion. We now make use of the two sample t-test with a 95 % confidence level to confirm our above hypothesis.

t.test(mtcars$mpg~mtcars$am,conf.level=0.95)
## 
##  Welch Two Sample t-test
## 
## data:  mtcars$mpg by mtcars$am
## t = -3.7671, df = 18.332, p-value = 0.001374
## alternative hypothesis: true difference in means is not equal to 0
## 95 percent confidence interval:
##  -11.280194  -3.209684
## sample estimates:
## mean in group 0 mean in group 1 
##        17.14737        24.39231

From the observation it is clear that the p value= 0.001374,so we reject the null hypothesis.
We will therefore conclude that Manual is better than automatic.
##PART 2: QUANTIFYING THE DIFFERENCE IN MPG (Exploratory analysis)
Here we have to look at the individual means. First for Automatic

summary(mtcars[mtcars$am==0,])
##       mpg             cyl             disp             hp       
##  Min.   :10.40   Min.   :4.000   Min.   :120.1   Min.   : 62.0  
##  1st Qu.:14.95   1st Qu.:6.000   1st Qu.:196.3   1st Qu.:116.5  
##  Median :17.30   Median :8.000   Median :275.8   Median :175.0  
##  Mean   :17.15   Mean   :6.947   Mean   :290.4   Mean   :160.3  
##  3rd Qu.:19.20   3rd Qu.:8.000   3rd Qu.:360.0   3rd Qu.:192.5  
##  Max.   :24.40   Max.   :8.000   Max.   :472.0   Max.   :245.0  
##       drat             wt             qsec             vs        
##  Min.   :2.760   Min.   :2.465   Min.   :15.41   Min.   :0.0000  
##  1st Qu.:3.070   1st Qu.:3.438   1st Qu.:17.18   1st Qu.:0.0000  
##  Median :3.150   Median :3.520   Median :17.82   Median :0.0000  
##  Mean   :3.286   Mean   :3.769   Mean   :18.18   Mean   :0.3684  
##  3rd Qu.:3.695   3rd Qu.:3.842   3rd Qu.:19.17   3rd Qu.:1.0000  
##  Max.   :3.920   Max.   :5.424   Max.   :22.90   Max.   :1.0000  
##        am         gear            carb      
##  Min.   :0   Min.   :3.000   Min.   :1.000  
##  1st Qu.:0   1st Qu.:3.000   1st Qu.:2.000  
##  Median :0   Median :3.000   Median :3.000  
##  Mean   :0   Mean   :3.211   Mean   :2.737  
##  3rd Qu.:0   3rd Qu.:3.000   3rd Qu.:4.000  
##  Max.   :0   Max.   :4.000   Max.   :4.000

The mean is : 17.15 Now for Manual

summary(mtcars[mtcars$am==1,])
##       mpg             cyl             disp             hp       
##  Min.   :15.00   Min.   :4.000   Min.   : 71.1   Min.   : 52.0  
##  1st Qu.:21.00   1st Qu.:4.000   1st Qu.: 79.0   1st Qu.: 66.0  
##  Median :22.80   Median :4.000   Median :120.3   Median :109.0  
##  Mean   :24.39   Mean   :5.077   Mean   :143.5   Mean   :126.8  
##  3rd Qu.:30.40   3rd Qu.:6.000   3rd Qu.:160.0   3rd Qu.:113.0  
##  Max.   :33.90   Max.   :8.000   Max.   :351.0   Max.   :335.0  
##       drat            wt             qsec             vs        
##  Min.   :3.54   Min.   :1.513   Min.   :14.50   Min.   :0.0000  
##  1st Qu.:3.85   1st Qu.:1.935   1st Qu.:16.46   1st Qu.:0.0000  
##  Median :4.08   Median :2.320   Median :17.02   Median :1.0000  
##  Mean   :4.05   Mean   :2.411   Mean   :17.36   Mean   :0.5385  
##  3rd Qu.:4.22   3rd Qu.:2.780   3rd Qu.:18.61   3rd Qu.:1.0000  
##  Max.   :4.93   Max.   :3.570   Max.   :19.90   Max.   :1.0000  
##        am         gear            carb      
##  Min.   :1   Min.   :4.000   Min.   :1.000  
##  1st Qu.:1   1st Qu.:4.000   1st Qu.:1.000  
##  Median :1   Median :4.000   Median :2.000  
##  Mean   :1   Mean   :4.385   Mean   :2.923  
##  3rd Qu.:1   3rd Qu.:5.000   3rd Qu.:4.000  
##  Max.   :1   Max.   :5.000   Max.   :8.000

The mean is : 24.39 Thus the difference between the means is approximately 7mpg.Now let us examine what factors actuallly affect the miles per gallon by using regression analysis. ##Single Variable Linear Regression model:

x<-lm(mpg~am,data=mtcars)
summary(x)
## 
## Call:
## lm(formula = mpg ~ am, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -9.3923 -3.0923 -0.2974  3.2439  9.5077 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept)   17.147      1.125  15.247 1.13e-15 ***
## am             7.245      1.764   4.106 0.000285 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 4.902 on 30 degrees of freedom
## Multiple R-squared:  0.3598, Adjusted R-squared:  0.3385 
## F-statistic: 16.86 on 1 and 30 DF,  p-value: 0.000285

As it can be observed this model has a r-squared error of 35.98%. i.e this model accounts for only 35.98% of the variance. So we will try the multivariate regression. ##Multi Variate Regression:

mvr <- lm(mpg~am + wt + hp + cyl, data = mtcars)
anova(x,mvr)
## Analysis of Variance Table
## 
## Model 1: mpg ~ am
## Model 2: mpg ~ am + wt + hp + cyl
##   Res.Df   RSS Df Sum of Sq      F    Pr(>F)    
## 1     30 720.9                                  
## 2     27 170.0  3     550.9 29.166 1.274e-08 ***
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1

Our required final model is the one shown below:

summary(mvr)
## 
## Call:
## lm(formula = mpg ~ am + wt + hp + cyl, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.4765 -1.8471 -0.5544  1.2758  5.6608 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept) 36.14654    3.10478  11.642 4.94e-12 ***
## am           1.47805    1.44115   1.026   0.3142    
## wt          -2.60648    0.91984  -2.834   0.0086 ** 
## hp          -0.02495    0.01365  -1.828   0.0786 .  
## cyl         -0.74516    0.58279  -1.279   0.2119    
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.509 on 27 degrees of freedom
## Multiple R-squared:  0.849,  Adjusted R-squared:  0.8267 
## F-statistic: 37.96 on 4 and 27 DF,  p-value: 1.025e-10

Here this model explains 84.9% of the variance.
It may be concluded that on average, manual transmissions have 1.478 more mpg than automatic. ##Appendix: ###1.Scatterplot matrix of the “mtcars” dataset

pairs(mpg ~ ., data = mtcars)

###2. Various Plots (Residual plots and analysis)

plot(mvr)

par(mfrow=c(2,1))
hist(mtcars$mpg, breaks=10, xlab="MPG", main="MPG histogram")
plot(density(mtcars$mpg), main="kernel density", xlab="MPG")

End of Document.