In a Comprehensive Road Test on New Car Models, One $\quad y =$

question 110

Multiple Choice

In a comprehensive road test on new car models, one variable measured is the time it takes the car to accelerate from 0 to 60 miles per hour. To model acceleration time, a regression analysis is conducted on a random sample of 129 new cars. TIME60: $\quad y =$ Elapsed time (in seconds) from $0 \mathrm { mph }$ to $60 \mathrm { mph }$
MAX $x =$ Maximum speed attained (miles per hour)
The simple linear model $E ( y ) = \beta _ { 0 } + \beta _ { 1 } x$ was fit to the data. Computer printouts for the analysis are given below:

NWEIGHTED LEAST SQUARES LINEAR REGRESSION OF TIME 60

$\begin{array}{l|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENT S T } & \text { P } \\\hline \text { CONSTANT } & 18.7171 & 0.63708 & 29.38 & 0.0000 \\\text { MAX } & -0.08365 & 0.00491 & -17.05 & 0.0000\end{array}$

$\begin{array}{llll}\text { R-SQUARED } & 0.6960 & \text { RESID. MEAN SQUARE (MSE) } & 1.28695 \\\text { ADJUSED R-SQUARED } & 0.6937 & \text { STANDARD DEVIATION } & 1.13444\end{array}$

$\begin{array}{l|r|r|c|c|c}\text { SOURCE } & \text { DF } & {\text { SS }} & \text { MS } & \text { F } & \text { P } \\\hline \text { REGRESSION } & 1 & 374.285 & 374.285 & 290.83 & 0.0000 \\\text { RESIDUAL } & 127 & 163.443 & 1.28695 & & \\\text { TOTAL } & 128 & 537.728 & & &\end{array}$

CASES INCLUDED 129 MISSING CASES 0 Approximately what percentage of the sample variation in acceleration time can be explained by the simple linear model?

• A) 70%
• B) 0%
• C) -17%
• D) 8%

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Definitions:

Deadweight Loss

An economic efficiency loss that occurs when market equilibrium is not achieved or when externalities are present, leading to a loss of total welfare.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.

Units Bought

Refers to the quantity of a particular good or service purchased by consumers or businesses.

Tax Imposed

A financial charge or other levy placed upon an individual or a legal entity by a state or a functional equivalent of a state.