Executive Summary

This report provides an analysis and evaluation of fuel efficiency in terms of miles per gallon (i.e., MPG) between automatic and manual transmission automobiles. The data was obtained from the 1974 Motor Trend US magazine, which comprises fuel consumption and 10 aspects of automobile design and performance for 32 automobiles (1973-74 models).

The methods used include “t.test”, “lm”, and “step”. Other analyses used to support the results are “boxplot” and summaries of the data per transmission type.

Results of the data analyzed show that, on average, manual transmission automobiles are better for MPG than their automatic transmission counterparts. Further results show that, in addition to transmission types, other factors may need to be considered to establish a more precise fuel efficiency estimation.

Objective

The objective of this study is to respond to the following inquiries:
1. “Is an automatic or manual transmission better for MPG?”
2. “Quantify the MPG difference between automatic and manual transmissions”

Data processing

1. Load the data

# Load the dataset
library(datasets)
data(mtcars)

2. Describe the data variables

mpg: Miles/(US) gallon
cyl: Number of cylinders
disp: Displacement (cu.in.)
hp: Gross horsepower
drat: Rear axle ratio
wt: Weight (lb/1000)
qsec: 1/4 mile time
vs: V/S
am: Transmission (0 = automatic, 1 = manual)
gear: Number of forward gears
carb: Number of carburetors

3. Prepare the data for analysis

# Inspect the structure of the data
str(mtcars)
## 'data.frame':    32 obs. of  11 variables:
##  $ mpg : num  21 21 22.8 21.4 18.7 18.1 14.3 24.4 22.8 19.2 ...
##  $ cyl : num  6 6 4 6 8 6 8 4 4 6 ...
##  $ disp: num  160 160 108 258 360 ...
##  $ hp  : num  110 110 93 110 175 105 245 62 95 123 ...
##  $ drat: num  3.9 3.9 3.85 3.08 3.15 2.76 3.21 3.69 3.92 3.92 ...
##  $ wt  : num  2.62 2.88 2.32 3.21 3.44 ...
##  $ qsec: num  16.5 17 18.6 19.4 17 ...
##  $ vs  : num  0 0 1 1 0 1 0 1 1 1 ...
##  $ am  : num  1 1 1 0 0 0 0 0 0 0 ...
##  $ gear: num  4 4 4 3 3 3 3 4 4 4 ...
##  $ carb: num  4 4 1 1 2 1 4 2 2 4 ...
# Transform numeric values of needed variables to factors
mtcars$am <- factor(mtcars$am, labels=c('Automatic', 'Manual'))

4. Analyze whether automatic or manual transmission better for MPG

A preliminary data exploration shows that:
a) The box plot (Appendix A) suggests that manual transmission automobiles are better for MPG.
b) The summaries per transmission type (Appendix A) also suggest that manual transmission automobiles are better for MPG, as the mean for Manual is 24.39 MPG, while the mean for Automatic is 17.15 MPG.

Hence, test for:
H0: There is no difference in MPG between automatic and manual transmissions.
H1: There is a difference in MPG between automatic and manual transmissions.

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 Automatic    mean in group Manual 
##                17.14737                24.39231

The result shows that p-value is less than the chosen significance level of 0.05, indicating strong evidence against the null hypothesis, and thus confirming the differences noted in items a) and b) above. Therefore, the null hypothesis is rejected.

5. Quantify the MPG difference between automatic and manual transmissions

In this step an attempt is made to determine whether there exists other variables that account for MPG variability. Given the considerable number of variables that could affect MPG, function step() will be used to have R choose the best linear regression model.

bestModel <- step(lm(data = mtcars, mpg ~ .), trace=0)
summary(bestModel)
## 
## Call:
## lm(formula = mpg ~ wt + qsec + am, data = mtcars)
## 
## Residuals:
##     Min      1Q  Median      3Q     Max 
## -3.4811 -1.5555 -0.7257  1.4110  4.6610 
## 
## Coefficients:
##             Estimate Std. Error t value Pr(>|t|)    
## (Intercept)   9.6178     6.9596   1.382 0.177915    
## wt           -3.9165     0.7112  -5.507 6.95e-06 ***
## qsec          1.2259     0.2887   4.247 0.000216 ***
## amManual      2.9358     1.4109   2.081 0.046716 *  
## ---
## Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
## 
## Residual standard error: 2.459 on 28 degrees of freedom
## Multiple R-squared:  0.8497, Adjusted R-squared:  0.8336 
## F-statistic: 52.75 on 3 and 28 DF,  p-value: 1.21e-11

The best selected model includes weight (wt), 1/4 mile time (qsec) and transmission (am). The coefficients indicate that MPG decreases -3.91 for every lb/1000 increase in weight, whereas every increase of 1/4 mile time increases MPG by 1.23. With respect to transmission types, on average manual transmission is 2.9 better than automatic transmission.

Conclusions

Appendix

A. Exploratory Data Analysis

boxplot(mpg ~ am, data = mtcars, xlab = "Transmission Type", ylab = "Miles per Gallon", main="Miles per Gallon (MPG) by Transmission Type")

summary(mtcars[mtcars$am == "Automatic",])
##       mpg             cyl             disp             hp       
##  Min.   :10.40   Min.   :4.000   Min.   :120.1   Min.   : 62.0  
##  1st Qu.:14.95   1st Qu.:6.000   1st Qu.:196.3   1st Qu.:116.5  
##  Median :17.30   Median :8.000   Median :275.8   Median :175.0  
##  Mean   :17.15   Mean   :6.947   Mean   :290.4   Mean   :160.3  
##  3rd Qu.:19.20   3rd Qu.:8.000   3rd Qu.:360.0   3rd Qu.:192.5  
##  Max.   :24.40   Max.   :8.000   Max.   :472.0   Max.   :245.0  
##       drat             wt             qsec             vs        
##  Min.   :2.760   Min.   :2.465   Min.   :15.41   Min.   :0.0000  
##  1st Qu.:3.070   1st Qu.:3.438   1st Qu.:17.18   1st Qu.:0.0000  
##  Median :3.150   Median :3.520   Median :17.82   Median :0.0000  
##  Mean   :3.286   Mean   :3.769   Mean   :18.18   Mean   :0.3684  
##  3rd Qu.:3.695   3rd Qu.:3.842   3rd Qu.:19.17   3rd Qu.:1.0000  
##  Max.   :3.920   Max.   :5.424   Max.   :22.90   Max.   :1.0000  
##          am          gear            carb      
##  Automatic:19   Min.   :3.000   Min.   :1.000  
##  Manual   : 0   1st Qu.:3.000   1st Qu.:2.000  
##                 Median :3.000   Median :3.000  
##                 Mean   :3.211   Mean   :2.737  
##                 3rd Qu.:3.000   3rd Qu.:4.000  
##                 Max.   :4.000   Max.   :4.000
summary(mtcars[mtcars$am == "Manual",])
##       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      
##  Automatic: 0   Min.   :4.000   Min.   :1.000  
##  Manual   :13   1st Qu.:4.000   1st Qu.:1.000  
##                 Median :4.000   Median :2.000  
##                 Mean   :4.385   Mean   :2.923  
##                 3rd Qu.:5.000   3rd Qu.:4.000  
##                 Max.   :5.000   Max.   :8.000

B. Linear model plots

par(mfrow = c(2,2))
plot(bestModel)

C. Working environment

sessionInfo()
## R version 3.2.2 (2015-08-14)
## Platform: x86_64-w64-mingw32/x64 (64-bit)
## Running under: Windows 7 x64 (build 7601) Service Pack 1
## 
## locale:
## [1] LC_COLLATE=English_United States.1252 
## [2] LC_CTYPE=English_United States.1252   
## [3] LC_MONETARY=English_United States.1252
## [4] LC_NUMERIC=C                          
## [5] LC_TIME=English_United States.1252    
## 
## attached base packages:
## [1] stats     graphics  grDevices utils     datasets  methods   base     
## 
## loaded via a namespace (and not attached):
##  [1] magrittr_1.5    tools_3.2.2     htmltools_0.3   yaml_2.1.13    
##  [5] stringi_0.5-5   rmarkdown_0.9.2 knitr_1.12.3    stringr_1.0.0  
##  [9] digest_0.6.8    evaluate_0.8