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SCENARIO 18-9
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 ( R2 yj.(All variables except j ) )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 X j as the dependent variable and all other X variables as independent variables ( R2 j )are,respectively, 0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Scenario 18-9,the error appears to be left-skewed.
Effective Interest Rate
The real rate of interest earned or paid on an investment, loan, or other financial product adjusted for compounding over a given period.
Present Value
The value today of a future cash amount or series of payments, based on a particular rate of return.
Fair Value
The value received from selling an asset or the expense of transferring a liability in a regulated transaction among market players on the date of evaluation.
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A financial transaction where a business sells its accounts receivable to a third party without the obligation to repay if the third party fails to collect the receivables.
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