Deck 18: Model Building

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Question
Suppose that the sample regression equation of a model is Suppose that the sample regression equation of a model is   .If we examine the relationship between y and x<sub>2</sub> for x<sub>1</sub> = 1,2,and 3,we observe that the three equations produced not only differ in the intercept term,but the coefficient of x<sub>2</sub> also varies.<div style=padding-top: 35px> .If we examine the relationship between y and x2 for x1 = 1,2,and 3,we observe that the three equations produced not only differ in the intercept term,but the coefficient of x2 also varies.
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Question
In the first-order regression model In the first-order regression model   ,a unit increase in x<sub>1</sub> increases the value of y on average by 6 units.<div style=padding-top: 35px> ,a unit increase in x1 increases the value of y on average by 6 units.
Question
In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at a value of 3,decreases the value of y on average by 3 units.<div style=padding-top: 35px> ,a unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y on average by 3 units.
Question
The model The model   is referred to as a simple linear regression model.<div style=padding-top: 35px> is referred to as a simple linear regression model.
Question
Which of the following is not an advantage of multiple regression as compared with analysis of variance?

A)Multiple regression can be used to estimate the relationship between the dependent variable and independent variables.
B)Multiple regression handles problems with more than two independent variables easier than analysis of variance.
C)Multiple regression handles nominal variables better than analysis of variance.
D)All of these choices are true are advantages of multiple regression as compared with analysis of variance.
Question
The model y = β0 + β1x1 + β2x2 + ε is referred to as a first-order model with two predictor variables with no interaction.
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The model The model   is used whenever the statistician believes that,on average,y is linearly related to x<sub>1</sub> and x<sub>2</sub> and the predictor variables do not interact.<div style=padding-top: 35px> is used whenever the statistician believes that,on average,y is linearly related to x1 and x2 and the predictor variables do not interact.
Question
Regression analysis allows the statistics practitioner to use mathematical models to realistically describe relationships between the dependent variable and independent variables.
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The graph of the model The graph of the model   is shaped like a straight line going upwards.<div style=padding-top: 35px> is shaped like a straight line going upwards.
Question
Suppose that the sample regression equation of a model is Suppose that the sample regression equation of a model is   .If we examine the relationship between x<sub>1</sub> and y for four different values of x<sub>2</sub>,we observe that the four equations produced differ only in the intercept term.<div style=padding-top: 35px> .If we examine the relationship between x1 and y for four different values of x2,we observe that the four equations produced differ only in the intercept term.
Question
In a first-order model with two predictors x1 and x2,an interaction term may be used when the relationship between the dependent variable y and the predictor variables is linear.
Question
A first-order polynomial model with one predictor variable is the familiar simple linear regression model.
Question
In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant,increases the value of y on average by 5 units.<div style=padding-top: 35px> ,a unit increase in x2,while holding x1 constant,increases the value of y on average by 5 units.
Question
We interpret the coefficients in a multiple regression model by holding all variables in the model constant.
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In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at 1,changes the value of y on average by −5 units.<div style=padding-top: 35px> ,a unit increase in x2,while holding x1 constant at 1,changes the value of y on average by −5 units.
Question
The model The model   is referred to as a polynomial model with one predictor variable.<div style=padding-top: 35px> is referred to as a polynomial model with one predictor variable.
Question
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is referred to as a second-order model with two predictor variables with interaction.
Question
In a first-order model with two predictors x1 and x2,an interaction term may be used when the:

A)relationship between the dependent variable and the independent variables is linear.
B)effect of x1 on the dependent variable is influenced by x2.
C)Effect of x2 on the dependent variable is influenced by x1.
D) both b and c.
Question
Suppose that the sample regression line of the first-order model is Suppose that the sample regression line of the first-order model is   .If we examine the relationship between y and x<sub>1</sub> for three different values of x<sub>2</sub>,we observe that the effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>2</sub>.<div style=padding-top: 35px> .If we examine the relationship between y and x1 for three different values of x2,we observe that the effect of x1 on y remains the same no matter what the value of x2.
Question
In the first-order model In the first-order model   ,a unit increase in x<sub>1</sub>,while holding x<sub>2</sub> constant at a value of 2,decreases the value of y on average by 8 units.<div style=padding-top: 35px> ,a unit increase in x1,while holding x2 constant at a value of 2,decreases the value of y on average by 8 units.
Question
When we plot x versus y,the graph of the model y = β0 + β1x + β2x2 + ε is shaped like a:

A)straight line going upwards.
B)circle.
C)parabola.
D)None of these choices.
Question
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is referred to as a:

A)first-order model with two predictor variables with no interaction.
B)first-order model with two predictor variables with interaction.
C)second-order model with three predictor variables with no interaction.
D)second-order model with three predictor variables with interaction.
Question
The model y = β0 + β1x1 + β2x2 + ε is used whenever the statistician believes that,on average,y is linearly related to:

A)x1 and the predictor variables do not interact.
B) x2 and the predictor variables do not interact.
C) Both a and b.
D) None of these choices.
Question
Suppose that the sample regression equation of a second-order model is given by <strong>Suppose that the sample regression equation of a second-order model is given by   .Then,the value 4.60 is the:</strong> A)predicted value of y for any positive value of x. B)predicted value of y when x = 2. C)estimated change in y when x increases by 1 unit . D)intercept where the response surface strikes the x-axis. <div style=padding-top: 35px> .Then,the value 4.60 is the:

A)predicted value of y for any positive value of x.
B)predicted value of y when x = 2.
C)estimated change in y when x increases by 1 unit .
D)intercept where the response surface strikes the x-axis.
Question
The independent variable x in a polynomial model is called the ____________________ variable.
Question
The model y = β0 + β1x + β2x2 + ε is referred to as a:

A)simple linear regression model.
B)first-order model with one predictor variable.
C)second-order model with one predictor variable.
D)third order model with two predictor variables.
Question
Suppose that the sample regression equation of a second-order model is given by <strong>Suppose that the sample regression equation of a second-order model is given by   .Then,the value 2.50 is the:</strong> A)intercept where the response surface strikes the y-axis. B)intercept where the response surface strikes the x-axis. C)predicted value of y. D)None of these choices. <div style=padding-top: 35px> .Then,the value 2.50 is the:

A)intercept where the response surface strikes the y-axis.
B)intercept where the response surface strikes the x-axis.
C)predicted value of y.
D)None of these choices.
Question
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>1</sub>,while holding x<sub>2</sub> constant at a value of 2,decreases the value of y on average by:</strong> A)92 B)85 C)20 D)an amount that depends on the value of x<sub>1</sub>. <div style=padding-top: 35px> ,a unit increase in x1,while holding x2 constant at a value of 2,decreases the value of y on average by:

A)92
B)85
C)20
D)an amount that depends on the value of x1.
Question
The model y = β0 + β1x + β2x2 +.........+ βpxp + ε is referred to as a polynomial model with:

A)one predictor variable.
B)p predictor variables.
C)(p + 1)predictor variables.
D)x predictor variables.
Question
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at a value of 3,decreases the value of y on average by:</strong> A)22 B)50 C)56 D)An amount that depends on the value of x<sub>2</sub> <div style=padding-top: 35px> ,a unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y on average by:

A)22
B)50
C)56
D)An amount that depends on the value of x2
Question
The model y = β0 + β1x1 + β2x2 + ε is referred to as a:

A)first-order model with one predictor variable.
B)first-order model with two predictor variables.
C)second-order model with one predictor variable.
D)second-order model with two predictor variables.
Question
For the following regression equation <strong>For the following regression equation   ,which combination of x<sub>1</sub> and x<sub>2</sub>,respectively,results in the largest average value of y?</strong> A)3 and 5 B)5 and 3 C)6 and 3 D)3 and 6 <div style=padding-top: 35px> ,which combination of x1 and x2,respectively,results in the largest average value of y?

A)3 and 5
B)5 and 3
C)6 and 3
D)3 and 6
Question
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub> increases the value of y on average by:</strong> A)4 B)7 C)17 D)an amount that depends on the value of x<sub>1</sub>. <div style=padding-top: 35px> ,a unit increase in x2 increases the value of y on average by:

A)4
B)7
C)17
D)an amount that depends on the value of x1.
Question
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>1</sub> increases the value of y on average by:</strong> A)5 B)30 C)26 D)an amount that depends on the value of x<sub>2</sub> <div style=padding-top: 35px> ,a unit increase in x1 increases the value of y on average by:

A)5
B)30
C)26
D)an amount that depends on the value of x2
Question
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at 1,changes the value of y on average by:</strong> A)−5 B)+5 C)10 D)−10 <div style=padding-top: 35px> ,a unit increase in x2,while holding x1 constant at 1,changes the value of y on average by:

A)−5
B)+5
C)10
D)−10
Question
Which of the following statements is false regarding the graph of the second-order polynomial model y = β0 + β1x + β2x2 + ε?

A)If β2 is negative,the graph is concave,while if β2 is positive,the graph is convex.
B)The greater the absolute value of β2,the smaller the rate of curvature.
C)When we plot x versus y,the graph is shaped like a parabola.
D)All of these choices are true.
Question
Suppose that the sample regression line of the first-order model is <strong>Suppose that the sample regression line of the first-order model is   .If we examine the relationship between y and x<sub>1</sub> for four different values of x<sub>2</sub>,we observe that the:</strong> A)only difference in the four equations produced is the coefficient of x<sub>2</sub>. B)effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>2</sub>. C)effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>1</sub>. D)Cannot answer this question without more information. <div style=padding-top: 35px> .If we examine the relationship between y and x1 for four different values of x2,we observe that the:

A)only difference in the four equations produced is the coefficient of x2.
B)effect of x1 on y remains the same no matter what the value of x2.
C)effect of x1 on y remains the same no matter what the value of x1.
D)Cannot answer this question without more information.
Question
Another term for a first-order polynomial model is a regression ____________________.
Question
A second-order polynomial model is shaped like a(n)____________________.
Question
Suppose that the sample regression equation of a model is <strong>Suppose that the sample regression equation of a model is   .If we examine the relationship between x<sub>1</sub> and y for three different values of x<sub>2</sub>,we observe that the:</strong> A)three equations produced differ not only in the intercept term but also the coefficient of x<sub>1</sub> varies. B)coefficient of x<sub>2</sub> remains unchanged. C)coefficient of x<sub>1</sub> varies. D)three equations produced differ only in the intercept. <div style=padding-top: 35px> .If we examine the relationship between x1 and y for three different values of x2,we observe that the:

A)three equations produced differ not only in the intercept term but also the coefficient of x1 varies.
B)coefficient of x2 remains unchanged.
C)coefficient of x1 varies.
D)three equations produced differ only in the intercept.
Question
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is a(n)____________________-order polynomial model with ____________________ predictor variables and ____________________.
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____________________ means that the effect of x1 on y is influenced by the value of x2,and vice versa.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Estimate the value of y when x = 45 using the estimated linear regression equation in the previous question.<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Estimate the value of y when x = 45 using the estimated linear regression equation in the previous question.
Question
The model y = β0 + β1x1 + β2x2 + ε is a(n)____________________-order polynomial model with ____________________ predictor variable(s).
Question
In a first-order polynomial model with no interaction,the effect of x1 on y remains the same no matter what the value of x2 is.The graph of this model produces straight lines that are ____________________ to each other.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Find the coefficient of determination of this simple linear model.What does this statistic tell you about the model?<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Find the coefficient of determination of this simple linear model.What does this statistic tell you about the model?
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Use the quadratic model to predict the value of y when x = 45.<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Use the quadratic model to predict the value of y when x = 45.
Question
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience.<div style=padding-top: 35px> S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience.<div style=padding-top: 35px> ​ ​
{Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?
Question
If a quadratic relationship exists between y and each of x1 and x2,you use a(n)____________________-order polynomial model.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form   ? Explain.<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form   ? Explain.<div style=padding-top: 35px> ? Explain.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   .<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   .<div style=padding-top: 35px> .
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine the coefficient of determination quadratic model.What does this statistic tell you about this model?<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine the coefficient of determination quadratic model.What does this statistic tell you about this model?
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the quadratic relationship between y,x,and x<sup>2</sup> in the previous question is significant.<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the quadratic relationship between y,x,and x2 in the previous question is significant.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the relationship between x and y is positive and significant.<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the relationship between x and y is positive and significant.
Question
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained.<div style=padding-top: 35px> S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained.<div style=padding-top: 35px> ​ ​
{Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained.
Question
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage?<div style=padding-top: 35px> S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage?<div style=padding-top: 35px> ​ ​
{Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage?
Question
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model.<div style=padding-top: 35px> S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model.<div style=padding-top: 35px> ​ ​
{Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model.
Question
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   .<div style=padding-top: 35px> Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   .<div style=padding-top: 35px> .
Question
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the x<sup>2</sup> term should be retained.<div style=padding-top: 35px> S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the x<sup>2</sup> term should be retained.<div style=padding-top: 35px> ​ ​
{Hockey Teams Narrative} Test to determine at the 10% significance level if the x2 term should be retained.
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>2</sub>.<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>2</sub>.<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Interpret the coefficient b2.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model.<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model.<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model.<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model.<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x1 term should be retained in the model.
Question
A first-order model was used in regression analysis involving 25 observations to study the relationship between a dependent variable y and three independent variables x1,x2,and x3.The analysis showed that the mean squares for regression is 160 and the sum of squares for error is 1050.In addition,the following is a partial computer printout. A first-order model was used in regression analysis involving 25 observations to study the relationship between a dependent variable y and three independent variables x<sub>1</sub>,x<sub>2</sub>,and x<sub>3</sub>.The analysis showed that the mean squares for regression is 160 and the sum of squares for error is 1050.In addition,the following is a partial computer printout.   a.Develop the ANOVA table. b.Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the value of y? c.Test at the 5% significance level to determine whether x<sub>1</sub> is linearly related to y. d.Is there sufficient evidence at the 5% significance level to indicate that x<sub>2</sub> is negatively linearly related to y? e.Is there sufficient evidence at the 5% significance level to indicate that x<sub>3</sub> is positively linearly related to y?<div style=padding-top: 35px>
a.Develop the ANOVA table.
b.Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the value of y?
c.Test at the 5% significance level to determine whether x1 is linearly related to y.
d.Is there sufficient evidence at the 5% significance level to indicate that x2 is negatively linearly related to y?
e.Is there sufficient evidence at the 5% significance level to indicate that x3 is positively linearly related to y?
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> term should be retained in the model.
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} What does the coefficient of Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> tell you about the model?
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related?<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related?<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related?
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained?<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained?<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained?
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>1</sub>.<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>1</sub>.<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Interpret the coefficient b1.
Question
It is not possible to incorporate nominal variables into a regression model.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.
Question
In explaining the amount of money spent on gifts for a child's birthday each year,the independent variable,age of child,is best represented by a dummy variable.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model.<div style=padding-top: 35px> term should be retained in the model.
Question
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related?<div style=padding-top: 35px> S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related?<div style=padding-top: 35px> ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related?
Question
In regression analysis,a nominal independent variable such as color,with three different categories such as red,white,and blue,is best represented by three indicator variables to represent the three colors.
Question
In regression analysis,indicator variables are also called dependent variables.
Question
An indicator variable (also called a dummy variable)is a variable that can assume either one of two values (usually 0 and 1),where one value represents the existence of a certain condition,and the other value indicates that the condition does not hold.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model.<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model.<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model.<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model.<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x2 term should be retained in the model.
Question
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> ​ ​
{Motorcycle Fatalities Narrative} What does the coefficient of Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model?<div style=padding-top: 35px> tell you about the model?
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Deck 18: Model Building
1
Suppose that the sample regression equation of a model is Suppose that the sample regression equation of a model is   .If we examine the relationship between y and x<sub>2</sub> for x<sub>1</sub> = 1,2,and 3,we observe that the three equations produced not only differ in the intercept term,but the coefficient of x<sub>2</sub> also varies. .If we examine the relationship between y and x2 for x1 = 1,2,and 3,we observe that the three equations produced not only differ in the intercept term,but the coefficient of x2 also varies.
True
2
In the first-order regression model In the first-order regression model   ,a unit increase in x<sub>1</sub> increases the value of y on average by 6 units. ,a unit increase in x1 increases the value of y on average by 6 units.
False
3
In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at a value of 3,decreases the value of y on average by 3 units. ,a unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y on average by 3 units.
False
4
The model The model   is referred to as a simple linear regression model. is referred to as a simple linear regression model.
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5
Which of the following is not an advantage of multiple regression as compared with analysis of variance?

A)Multiple regression can be used to estimate the relationship between the dependent variable and independent variables.
B)Multiple regression handles problems with more than two independent variables easier than analysis of variance.
C)Multiple regression handles nominal variables better than analysis of variance.
D)All of these choices are true are advantages of multiple regression as compared with analysis of variance.
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6
The model y = β0 + β1x1 + β2x2 + ε is referred to as a first-order model with two predictor variables with no interaction.
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7
The model The model   is used whenever the statistician believes that,on average,y is linearly related to x<sub>1</sub> and x<sub>2</sub> and the predictor variables do not interact. is used whenever the statistician believes that,on average,y is linearly related to x1 and x2 and the predictor variables do not interact.
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8
Regression analysis allows the statistics practitioner to use mathematical models to realistically describe relationships between the dependent variable and independent variables.
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9
The graph of the model The graph of the model   is shaped like a straight line going upwards. is shaped like a straight line going upwards.
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10
Suppose that the sample regression equation of a model is Suppose that the sample regression equation of a model is   .If we examine the relationship between x<sub>1</sub> and y for four different values of x<sub>2</sub>,we observe that the four equations produced differ only in the intercept term. .If we examine the relationship between x1 and y for four different values of x2,we observe that the four equations produced differ only in the intercept term.
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11
In a first-order model with two predictors x1 and x2,an interaction term may be used when the relationship between the dependent variable y and the predictor variables is linear.
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12
A first-order polynomial model with one predictor variable is the familiar simple linear regression model.
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13
In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant,increases the value of y on average by 5 units. ,a unit increase in x2,while holding x1 constant,increases the value of y on average by 5 units.
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14
We interpret the coefficients in a multiple regression model by holding all variables in the model constant.
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15
In the first-order model In the first-order model   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at 1,changes the value of y on average by −5 units. ,a unit increase in x2,while holding x1 constant at 1,changes the value of y on average by −5 units.
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16
The model The model   is referred to as a polynomial model with one predictor variable. is referred to as a polynomial model with one predictor variable.
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17
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is referred to as a second-order model with two predictor variables with interaction.
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18
In a first-order model with two predictors x1 and x2,an interaction term may be used when the:

A)relationship between the dependent variable and the independent variables is linear.
B)effect of x1 on the dependent variable is influenced by x2.
C)Effect of x2 on the dependent variable is influenced by x1.
D) both b and c.
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19
Suppose that the sample regression line of the first-order model is Suppose that the sample regression line of the first-order model is   .If we examine the relationship between y and x<sub>1</sub> for three different values of x<sub>2</sub>,we observe that the effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>2</sub>. .If we examine the relationship between y and x1 for three different values of x2,we observe that the effect of x1 on y remains the same no matter what the value of x2.
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20
In the first-order model In the first-order model   ,a unit increase in x<sub>1</sub>,while holding x<sub>2</sub> constant at a value of 2,decreases the value of y on average by 8 units. ,a unit increase in x1,while holding x2 constant at a value of 2,decreases the value of y on average by 8 units.
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21
When we plot x versus y,the graph of the model y = β0 + β1x + β2x2 + ε is shaped like a:

A)straight line going upwards.
B)circle.
C)parabola.
D)None of these choices.
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22
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is referred to as a:

A)first-order model with two predictor variables with no interaction.
B)first-order model with two predictor variables with interaction.
C)second-order model with three predictor variables with no interaction.
D)second-order model with three predictor variables with interaction.
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23
The model y = β0 + β1x1 + β2x2 + ε is used whenever the statistician believes that,on average,y is linearly related to:

A)x1 and the predictor variables do not interact.
B) x2 and the predictor variables do not interact.
C) Both a and b.
D) None of these choices.
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24
Suppose that the sample regression equation of a second-order model is given by <strong>Suppose that the sample regression equation of a second-order model is given by   .Then,the value 4.60 is the:</strong> A)predicted value of y for any positive value of x. B)predicted value of y when x = 2. C)estimated change in y when x increases by 1 unit . D)intercept where the response surface strikes the x-axis. .Then,the value 4.60 is the:

A)predicted value of y for any positive value of x.
B)predicted value of y when x = 2.
C)estimated change in y when x increases by 1 unit .
D)intercept where the response surface strikes the x-axis.
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25
The independent variable x in a polynomial model is called the ____________________ variable.
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26
The model y = β0 + β1x + β2x2 + ε is referred to as a:

A)simple linear regression model.
B)first-order model with one predictor variable.
C)second-order model with one predictor variable.
D)third order model with two predictor variables.
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27
Suppose that the sample regression equation of a second-order model is given by <strong>Suppose that the sample regression equation of a second-order model is given by   .Then,the value 2.50 is the:</strong> A)intercept where the response surface strikes the y-axis. B)intercept where the response surface strikes the x-axis. C)predicted value of y. D)None of these choices. .Then,the value 2.50 is the:

A)intercept where the response surface strikes the y-axis.
B)intercept where the response surface strikes the x-axis.
C)predicted value of y.
D)None of these choices.
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28
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>1</sub>,while holding x<sub>2</sub> constant at a value of 2,decreases the value of y on average by:</strong> A)92 B)85 C)20 D)an amount that depends on the value of x<sub>1</sub>. ,a unit increase in x1,while holding x2 constant at a value of 2,decreases the value of y on average by:

A)92
B)85
C)20
D)an amount that depends on the value of x1.
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29
The model y = β0 + β1x + β2x2 +.........+ βpxp + ε is referred to as a polynomial model with:

A)one predictor variable.
B)p predictor variables.
C)(p + 1)predictor variables.
D)x predictor variables.
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30
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at a value of 3,decreases the value of y on average by:</strong> A)22 B)50 C)56 D)An amount that depends on the value of x<sub>2</sub> ,a unit increase in x2,while holding x1 constant at a value of 3,decreases the value of y on average by:

A)22
B)50
C)56
D)An amount that depends on the value of x2
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31
The model y = β0 + β1x1 + β2x2 + ε is referred to as a:

A)first-order model with one predictor variable.
B)first-order model with two predictor variables.
C)second-order model with one predictor variable.
D)second-order model with two predictor variables.
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32
For the following regression equation <strong>For the following regression equation   ,which combination of x<sub>1</sub> and x<sub>2</sub>,respectively,results in the largest average value of y?</strong> A)3 and 5 B)5 and 3 C)6 and 3 D)3 and 6 ,which combination of x1 and x2,respectively,results in the largest average value of y?

A)3 and 5
B)5 and 3
C)6 and 3
D)3 and 6
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33
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub> increases the value of y on average by:</strong> A)4 B)7 C)17 D)an amount that depends on the value of x<sub>1</sub>. ,a unit increase in x2 increases the value of y on average by:

A)4
B)7
C)17
D)an amount that depends on the value of x1.
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34
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>1</sub> increases the value of y on average by:</strong> A)5 B)30 C)26 D)an amount that depends on the value of x<sub>2</sub> ,a unit increase in x1 increases the value of y on average by:

A)5
B)30
C)26
D)an amount that depends on the value of x2
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35
For the following regression equation <strong>For the following regression equation   ,a unit increase in x<sub>2</sub>,while holding x<sub>1</sub> constant at 1,changes the value of y on average by:</strong> A)−5 B)+5 C)10 D)−10 ,a unit increase in x2,while holding x1 constant at 1,changes the value of y on average by:

A)−5
B)+5
C)10
D)−10
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36
Which of the following statements is false regarding the graph of the second-order polynomial model y = β0 + β1x + β2x2 + ε?

A)If β2 is negative,the graph is concave,while if β2 is positive,the graph is convex.
B)The greater the absolute value of β2,the smaller the rate of curvature.
C)When we plot x versus y,the graph is shaped like a parabola.
D)All of these choices are true.
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37
Suppose that the sample regression line of the first-order model is <strong>Suppose that the sample regression line of the first-order model is   .If we examine the relationship between y and x<sub>1</sub> for four different values of x<sub>2</sub>,we observe that the:</strong> A)only difference in the four equations produced is the coefficient of x<sub>2</sub>. B)effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>2</sub>. C)effect of x<sub>1</sub> on y remains the same no matter what the value of x<sub>1</sub>. D)Cannot answer this question without more information. .If we examine the relationship between y and x1 for four different values of x2,we observe that the:

A)only difference in the four equations produced is the coefficient of x2.
B)effect of x1 on y remains the same no matter what the value of x2.
C)effect of x1 on y remains the same no matter what the value of x1.
D)Cannot answer this question without more information.
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38
Another term for a first-order polynomial model is a regression ____________________.
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39
A second-order polynomial model is shaped like a(n)____________________.
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40
Suppose that the sample regression equation of a model is <strong>Suppose that the sample regression equation of a model is   .If we examine the relationship between x<sub>1</sub> and y for three different values of x<sub>2</sub>,we observe that the:</strong> A)three equations produced differ not only in the intercept term but also the coefficient of x<sub>1</sub> varies. B)coefficient of x<sub>2</sub> remains unchanged. C)coefficient of x<sub>1</sub> varies. D)three equations produced differ only in the intercept. .If we examine the relationship between x1 and y for three different values of x2,we observe that the:

A)three equations produced differ not only in the intercept term but also the coefficient of x1 varies.
B)coefficient of x2 remains unchanged.
C)coefficient of x1 varies.
D)three equations produced differ only in the intercept.
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41
The model y = β0 + β1x1 + β2x2 + β3x1x2 + ε is a(n)____________________-order polynomial model with ____________________ predictor variables and ____________________.
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42
____________________ means that the effect of x1 on y is influenced by the value of x2,and vice versa.
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43
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Estimate the value of y when x = 45 using the estimated linear regression equation in the previous question. Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Estimate the value of y when x = 45 using the estimated linear regression equation in the previous question.
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44
The model y = β0 + β1x1 + β2x2 + ε is a(n)____________________-order polynomial model with ____________________ predictor variable(s).
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45
In a first-order polynomial model with no interaction,the effect of x1 on y remains the same no matter what the value of x2 is.The graph of this model produces straight lines that are ____________________ to each other.
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46
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Find the coefficient of determination of this simple linear model.What does this statistic tell you about the model? Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Find the coefficient of determination of this simple linear model.What does this statistic tell you about the model?
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47
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Use the quadratic model to predict the value of y when x = 45. Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Use the quadratic model to predict the value of y when x = 45.
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48
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience. S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience. ​ ​
{Hockey Teams Narrative} Predict the winning percentage for a hockey team with an average of 6 years of professional experience.
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49
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities? (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities? Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities? S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities? ​ ​
{Motorcycle Fatalities Narrative} Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?
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50
If a quadratic relationship exists between y and each of x1 and x2,you use a(n)____________________-order polynomial model.
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51
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form   ? Explain. Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop a scatter diagram for the data.Does the scatter diagram suggest an estimated regression equation of the form   ? Explain. ? Explain.
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52
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   . Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   . .
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53
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine the coefficient of determination quadratic model.What does this statistic tell you about this model? Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine the coefficient of determination quadratic model.What does this statistic tell you about this model?
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54
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the quadratic relationship between y,x,and x<sup>2</sup> in the previous question is significant. Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the quadratic relationship between y,x,and x2 in the previous question is significant.
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55
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the relationship between x and y is positive and significant. Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Determine if there is sufficient evidence at the 5% significance level to infer that the relationship between x and y is positive and significant.
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56
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained. S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained. ​ ​
{Hockey Teams Narrative} Test to determine at the 10% significance level if the linear term should be retained.
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57
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage? S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage? ​ ​
{Hockey Teams Narrative} Do these results allow us to conclude at the 5% significance level that the model is useful in predicting the team's winning percentage?
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58
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model. S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model. ​ ​
{Hockey Teams Narrative} What is the coefficient of determination? Explain what this statistic tells you about the model.
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59
Computer Training
Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   . Use statistical software to answer the following question(s). ​ ​
{Computer Training Narrative} Develop an estimated regression equation of the form  Computer Training Consider the following data for two variables,x and y.The independent variable x represents the amount of training time (in hours)for a salesperson starting in a new computer store to adjust fully,and the dependent variable y represents the weekly sales (in $1000s).   Use statistical software to answer the following question(s). ​ ​ {Computer Training Narrative} Develop an estimated regression equation of the form   . .
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60
Hockey Teams
An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β0 + β1x + β2x2 + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x2 Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the x<sup>2</sup> term should be retained. S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE Hockey Teams An avid hockey fan was in the process of examining the factors that determine the success or failure of hockey teams.He noticed that teams with many rookies and teams with many veterans seem to do quite poorly.To further analyze his beliefs he took a random sample of 20 teams and proposed a second-order model with one independent variable,average years of professional experience.The selected model is y = β<sub>0</sub> + β<sub>1</sub>x + β<sub>2</sub>x<sup>2</sup> + ε,where y = winning team's percentage,and x = average years of professional experience.The computer output is shown below. THE REGRESSION EQUATION IS y = 32.6 + 5.96x− .48x<sup>2</sup>   S = 16.1 R−Sq = 43.9% ANALYSIS OF VARIANCE   ​ ​ {Hockey Teams Narrative} Test to determine at the 10% significance level if the x<sup>2</sup> term should be retained. ​ ​
{Hockey Teams Narrative} Test to determine at the 10% significance level if the x2 term should be retained.
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61
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>2</sub>. S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>2</sub>. ​ ​
{Silver Prices Narrative} Interpret the coefficient b2.
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62
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model. (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model. Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model. S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>1</sub> term should be retained in the model. ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x1 term should be retained in the model.
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63
A first-order model was used in regression analysis involving 25 observations to study the relationship between a dependent variable y and three independent variables x1,x2,and x3.The analysis showed that the mean squares for regression is 160 and the sum of squares for error is 1050.In addition,the following is a partial computer printout. A first-order model was used in regression analysis involving 25 observations to study the relationship between a dependent variable y and three independent variables x<sub>1</sub>,x<sub>2</sub>,and x<sub>3</sub>.The analysis showed that the mean squares for regression is 160 and the sum of squares for error is 1050.In addition,the following is a partial computer printout.   a.Develop the ANOVA table. b.Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the value of y? c.Test at the 5% significance level to determine whether x<sub>1</sub> is linearly related to y. d.Is there sufficient evidence at the 5% significance level to indicate that x<sub>2</sub> is negatively linearly related to y? e.Is there sufficient evidence at the 5% significance level to indicate that x<sub>3</sub> is positively linearly related to y?
a.Develop the ANOVA table.
b.Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the value of y?
c.Test at the 5% significance level to determine whether x1 is linearly related to y.
d.Is there sufficient evidence at the 5% significance level to indicate that x2 is negatively linearly related to y?
e.Is there sufficient evidence at the 5% significance level to indicate that x3 is positively linearly related to y?
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64
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. term should be retained in the model.
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65
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver? S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver? ​ ​
{Silver Prices Narrative} Do these results allow us at the 5% significance level to conclude that the model is useful in predicting the price of silver?
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66
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model? (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model? Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model? S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model? ​ ​
{Motorcycle Fatalities Narrative} What is the multiple coefficient of determination? What does this statistic tell you about the model?
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67
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? ​ ​
{Motorcycle Fatalities Narrative} What does the coefficient of Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? tell you about the model?
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68
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related? S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related? ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the price of a barrel of oil and the price of silver are linearly related?
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69
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained? S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained? ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interaction term should be retained?
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70
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>1</sub>. S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Interpret the coefficient b<sub>1</sub>. ​ ​
{Silver Prices Narrative} Interpret the coefficient b1.
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71
It is not possible to incorporate nominal variables into a regression model.
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72
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model. (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model. Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model. S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model. ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the interaction term should be retained in the model.
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73
In explaining the amount of money spent on gifts for a child's birthday each year,the independent variable,age of child,is best represented by a dummy variable.
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74
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the   term should be retained in the model. term should be retained in the model.
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75
Silver Prices
An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x1)and the interest rate (x2).She proposes the first-order model with interaction: y = β0 + β1x1 + β2x2 + β3x1x3 + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x1 + 14.7x2− 1.36x1x2 Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related? S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE Silver Prices An economist is in the process of developing a model to predict the price of silver.She believes that the two most important variables are the price of a barrel of oil (x<sub>1</sub>)and the interest rate (x<sub>2</sub>).She proposes the first-order model with interaction: y = β<sub>0</sub> + β<sub>1</sub>x<sub>1</sub> + β<sub>2</sub>x<sub>2</sub> + β<sub>3</sub>x<sub>1</sub>x<sub>3</sub> + ε.A random sample of 20 daily observations was taken.The computer output is shown below. THE REGRESSION EQUATION IS y = 115.6 + 22.3x<sub>1</sub> + 14.7x<sub>2</sub>− 1.36x<sub>1</sub>x<sub>2</sub>   S = 20.9 R−Sq = 55.4% ANALYSIS OF VARIANCE   ​ ​ {Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related? ​ ​
{Silver Prices Narrative} Is there sufficient evidence at the 1% significance level to conclude that the interest rate and the price of silver are linearly related?
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76
In regression analysis,a nominal independent variable such as color,with three different categories such as red,white,and blue,is best represented by three indicator variables to represent the three colors.
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77
In regression analysis,indicator variables are also called dependent variables.
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78
An indicator variable (also called a dummy variable)is a variable that can assume either one of two values (usually 0 and 1),where one value represents the existence of a certain condition,and the other value indicates that the condition does not hold.
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79
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model. (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model. Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model. S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x<sub>2</sub> term should be retained in the model. ​ ​
{Motorcycle Fatalities Narrative} Test at the 1% significance level to determine if the x2 term should be retained in the model.
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80
Motorcycle Fatalities
A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? (the second-order model with interaction),where y = number of annual fatalities per county,x1 = number of motorcycles registered in the county (in 10,000),and x2 = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? ​ ​
{Motorcycle Fatalities Narrative} What does the coefficient of Motorcycle Fatalities A traffic consultant has analyzed the factors that affect the number of motorcycle fatalities.She has come to the conclusion that two important variables are the number of motorcycle and the number of cars.She proposed the model   (the second-order model with interaction),where y = number of annual fatalities per county,x<sub>1</sub> = number of motorcycles registered in the county (in 10,000),and x<sub>2</sub> = number of cars registered in the county (in 1000).The computer output (based on a random sample of 35 counties)is shown below: THE REGRESSION EQUATION IS     S = 15.2 R−Sq = 47.2% ANALYSIS OF VARIANCE   ​ ​ {Motorcycle Fatalities Narrative} What does the coefficient of   tell you about the model? tell you about the model?
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