Executive Summary

In this analysis, I will be using data from the 1974 Motor Trend magazine to explore the relationship between 2 variables and miles per gallon (mpg). I will be answering the following two questions in my analysis:

1.“Is an automatic or manual transmission better for MPG”

2.”Quantify the MPG difference between automatic and manual transmissions”

In order to answer these questions I will utilize a knitr document to complete the following:

-Provide exploratory data

-Provide visual analysis

1. Is an automatic or manual transmission better for MPG

Obtain Data from the 1974 Motor Trend US magazine and load the library.

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

Review Automatic vs. manual transmission mpg’s

Automatic Transmission

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               am   
##  Min.   :2.760   Min.   :2.465   Min.   :15.41   Min.   :0.0000   Min.   :0  
##  1st Qu.:3.070   1st Qu.:3.438   1st Qu.:17.18   1st Qu.:0.0000   1st Qu.:0  
##  Median :3.150   Median :3.520   Median :17.82   Median :0.0000   Median :0  
##  Mean   :3.286   Mean   :3.769   Mean   :18.18   Mean   :0.3684   Mean   :0  
##  3rd Qu.:3.695   3rd Qu.:3.842   3rd Qu.:19.17   3rd Qu.:1.0000   3rd Qu.:0  
##  Max.   :3.920   Max.   :5.424   Max.   :22.90   Max.   :1.0000   Max.   :0  
##       gear            carb      
##  Min.   :3.000   Min.   :1.000  
##  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

Manual Transmission

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

The mean mpg of the manual transmission (24.4) is greater than the mean mpg of the automatic transmission (17.1), making Manual transmission better for MPG’s.

2. Quantify the MPG difference between automatic and manual transmissions

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

As displayed visually in the above boxplot, the manual transmission shows a higher mean of MPG.

Hypothesis Testing

aggregate(mpg~am, data = mtcars, mean)
##   am      mpg
## 1  0 17.14737
## 2  1 24.39231

The mean transmission for manual is 7.24mpg higher than automatic

auto <- mtcars[mtcars$am == 0,]
manual <- mtcars[mtcars$am == 1,]
t.test(auto$mpg, manual$mpg)
## 
##  Welch Two Sample t-test
## 
## data:  auto$mpg and manual$mpg
## 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 of x mean of y 
##  17.14737  24.39231

There is a major difference between mpg of manual and automatic transmissions.

m<-lm(mpg~am,data=mtcars)
summary(m)
## 
## 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

From the above, we may conclude that automatic run at 17.15mpg, while manual have 7.24 more mpg.

model <- lm(mpg~am + wt + hp + cyl, data = mtcars)
anova(m,model)
## 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

The final model is shown below:

summary(model)
## 
## 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

conclusion

It can be concluded from above that on average, manual transmissions have 1.478 moer MPG than automatic transmissions.

Visual Appendix

plot(model)