A Traffic Consultant Has Analysed the Factors That Affect the Number

question 11

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 $$\begin{array} { | l | c c c c | } \hline \begin{array} { l } \text { Source of } \\\text { Variation }\end{array} & d f & \text { SS } & M S & F \\\hline \text { Regression } & 5 & 5959 & 1191.800 & 5.181 \\\text { Error } & 29 & 6671 & 230.034 & \\\hline \text { Total } & 34 & 12630 & & \\\hline\end{array}$$ Is there enough evidence at the 5% significance level to conclude that the model is useful in predicting the number of fatalities?

Identify factors that may not lead to higher margins and market share.

Understand the quantitative relationship between market share increases and profitability improvements.

Recognize the broader implications of market share on a firm's performance metrics.

Analyze the multifaceted effects of strategies aimed at gaining market share.

---

Definitions:

Social Business

A company that is focused on addressing social problems while operating on a business model that is self-sustainable.

Eco-Friendly Products

Goods produced in ways that minimize harm to the environment, often utilizing sustainable materials and practices.

Business Model Innovation

The process of modifying the fundamental principles behind how a company creates, delivers, and captures value.

Self-Installed

Refers to equipment or software that is designed to be set up or installed by the end-user, without the need for professional assistance.