A Traffic Consultant Has Analysed the Factors That Affect the Number

question 18

Essay

A traffic consultant has analysed the factors that affect the number of traffic fatalities. She has come to the conclusion that two important variables are the number of cars and the number of tractor-trailer trucks. She proposed the second-order model with interaction: $y =$ $\beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } ^ { 2 } + \beta _ { 4 } x _ { 2 } ^ { 2 } + \beta _ { 5 } x _ { 1 } x _ { 2 } + \varepsilon$ .
Where:
y = number of annual fatalities per shire. $x _ { 1 }$ = number of cars registered in the shire (in units of 10 000). $x _ { 2 }$ = number of trucks registered in the shire (in units of 1000).
The computer output (based on a random sample of 35 shires) is shown below.
THE REGRESSION EQUATION IS $y =$ $69.7 + 11.3 x _ { 1 } + 7.61 x _ { 2 } - 1.15 x _ { 1 } ^ { 2 } - 0.51 x _ { 2 } ^ { 2 } - 0.13 x _ { 1 } x _ { 2 }$ . $$\begin{array} { | c | r r c | } \hline \text { Predictor } & \text { Coef } & \text { SiDev } & T \\\hline \text { Constant } & 69.7 & 41.3 & 1.688 \\x _ { 1 } & 11.3 & 5.1 & 2.216 \\x _ { 2 } & 7.61 & 2.55 & 2.984 \\x _ { 1 } ^ { 2 } & - 1.15 & 0.64 & - 1.797 \\x _ { 2 } ^ { 2 } & - 0.51 & 0.20 & - 2.55 \\x _ { 1 } x _ { 2 } & - 0.13 & 0.10 & - 1.30 \\\hline\end{array}$$ S = 15.2 R-Sq = 47.2%.
ANALYSIS OF VARIANCE $$\begin{array} { | l | c c c c | } \hline \begin{array} { l } \text { Source of } \\\text { Variation }\end{array} & d f & \text { SS } & M S & F \\\hline \text { Regression } & 5 & 5959 & 1191.800 & 5.181 \\\text { Error } & 29 & 6671 & 230.034 & \\\hline \text { Total } & 34 & 12630 & & \\\hline\end{array}$$ What does the coefficient of $x _ { 1 } ^ { 2 }$ tell you about the model?

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Definitions:

Marginal Product

The additional output generated by employing one more unit of a specific input, while holding other inputs constant.

Labor

The effort of humans, including both physical and mental labor, utilized in creating goods and providing services.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input while holding other inputs constant.

Average Product

The total output produced per unit of a factor of production, calculated as total product divided by the quantity of the factor used.