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

question 43

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 6-cylinder cars is
________.

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

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Definitions:

Business Planning

The process of creating a detailed plan on how a business will achieve its goals and objectives. It includes strategy development, resource allocation, and financial forecasting.

Strategic Planning

A process for defining a company's direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Operational Planning

The process of planning short-term actions and strategies to achieve goals and objectives set by strategic planning.

Budgeting

The process of creating a plan to spend your money, allowing an individual or organization to determine in advance whether they can afford the necessary expenditures.