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:

Purchase Order

A formal document sent from a buyer to a supplier with a request to purchase specified products or services at agreed upon terms.

Withdrawal Kanban

A signaling system within the Just-in-Time (JIT) manufacturing process that indicates when to withdraw parts or materials from the supply chain to the production line.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific activities, providing more accurate product or service costing.

Production Stage

A specific phase in the manufacturing process where raw materials are transformed into finished goods.