SCENARIO 14-14 An Automotive Engineer Would Like to Be Able to Predict

question 44

Multiple Choice

SCENARIO 14-14
An automotive engineer would like to be able to predict automobile mileages.She believes that the
two most important characteristics that affect mileage are horsepower and the number of cylinders (4
or 6) of a car.She believes that the appropriate model is
Y = 40 - 0.05X1 + 20X2 - 0.1X1X2
where X1 = horsepower
X2 = 1 if 4 cylinders, 0 if 6 cylinders
Y = mileage.
-Referring to Scenario 14-14, the fitted model for predicting mileages for 4-cylinder cars is
________.

• A) 40 - 0.05X1
• B) 40 - 0.10X1
• C) 60 - 0.10X1
• D) 60 - 0.15X1

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Definitions:

Regression Equation

An equation that estimates the relationship between a dependent variable and one or more independent variables.

Predicted Values

These are values estimated based on a model, representing what is likely to happen under certain conditions according to that model.

Homoscedasticity

The condition where the variance of the residuals, or errors, in a regression model is constant across all levels of the independent variable.

Regression Analysis

Regression Analysis is a statistical method used to investigate and model the relationship between variables, typically one dependent variable and one or more independent variables.