TABLE 15-5 What Are the Factors That Determine the Acceleration Time (In

question 88

Multiple Choice

TABLE 15-5
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.
ANOVA
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 as the dependent variable and all other X variables as independent variables ( ) are, respectively, 0.7461, 0.5676, 0.6764, 0.8582, 0.6632.
-Referring to Table 15-5, what is the correct interpretation for the estimated coefficient for SUV?

• A) The mean 0 to 60 miles per hour acceleration time of an SUV is estimated to be 0.7679 seconds higher than that of a coupe after considering the effect of all the other independent variables in the model.
• B) The mean 0 to 60 miles per hour acceleration time of an SUV is estimated to be 0.7679 seconds higher than that of a sedan after considering the effect of all the other independent variables in the model.
• C) The mean 0 to 60 miles per hour acceleration time of an SUV is estimated to be 0.7679 seconds lower than that of a coupe after considering the effect of all the other independent variables in the model.
• D) The mean 0 to 60 miles per hour acceleration time of an SUV is estimated to be 0.7679 seconds lower than that of a sedan after considering the effect of all the other independent variables in the model.

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Definitions:

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead expenses incurred.

Standard Costing System

A cost accounting method that assigns expected costs to each unit of product to help managers monitor performance.

Direct Labour Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.

Standard Overhead Rate

The rate at which indirect costs are allocated to products or services based on a pre-determined basis, such as labor hours or machine hours.