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TABLE 17-9
What are the factors that determine the acceleration time (in sec.)from 0 to 60 miles per hour of a car? Data on the following variables for 171 different vehicle models were collected:
Accel Time: Acceleration time in sec.
Cargo Vol: Cargo volume in cu.ft.
HP: Horsepower
MPG: Miles per gallon
SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0
Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0
The regression results using acceleration time as the dependent variable and the remaining variables as the independent variables are presented below. The various residual plots are as shown below.
The coefficient of partial determination (
)of each of the 5 predictors are,respectively,0.0380,0.4376,0.0248,0.0188,and 0.0312.
The coefficient of multiple determination for the regression model using each of the 5 variables Xj as the dependent variable and all other X variables as independent variables ( )are,respectively,0.7461,0.5676,0.6764,0.8582,0.6632.
-True or False: Referring to Table 17-9,the 0 to 60 miles per hour acceleration time of a coupe is predicted to be 0.6427 seconds lower than that of a sedan.
Cash Inflow
The total amount of money being transferred into a business, from operations, investments, or financing activities.
Incremental Analysis
A financial decision-making approach focusing on the costs and revenues that change due to a specific decision.
Costs
Costs represent the monetary value spent on resources, labor, and other expenses necessary for the production of goods or services.
Sunk Cost
An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.
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