A Traffic Consultant Has Analysed the Factors That Affect the Number

question 12

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 $$\begin{array} { | l | c c c c | } \hline \begin{array} { l } \text { Source of } \\\text { Variation }\end{array} & d f & \text { SS } & M S & F \\\hline \text { Regression } & 5 & 5959 & 1191.800 & 5.181 \\\text { Error } & 29 & 6671 & 230.034 & \\\hline \text { Total } & 34 & 12630 & & \\\hline\end{array}$$ Test at the 1% significance level to determine whether the $x _ { 2 } ^ { 2 }$ term should be retained in the model.

Calculate and analyze the average and marginal product of labor.

Interpret the effects of wage changes on consumer's choice between income and leisure.

Determine the marginal revenue product of labor.

Analyze the effects of wage changes on the firm's demand for labor.

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions, and feelings.

Mental Disorders

Health conditions characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.

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Managed or addressed through medical, psychological, or other means to alleviate or cure a condition or illness.

Echolalia

The automatic and involuntary repetition of sounds or words spoken by others, often observed in individuals with autism and other communication disorders.