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The Model E(y)=β0+β1x1+β2x2+β3x3+β4x4E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \beta _ { 4 } x _ { 4 }

question 76

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The model E(y)=β0+β1x1+β2x2+β3x3+β4x4E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 3 } + \beta _ { 4 } x _ { 4 } was used to relate E(y)E ( y ) to a single qualitative variable, where
x1"{1 if level 2 0 if not x2"{1 if level 3 0 if not x _ { 1 } " \left\{ \begin{array} { l l } 1 & \text { if level 2 } \\ 0 & \text { if not } \end{array} \quad x _ { 2 } " \left\{ \begin{array} { l l } 1 & \text { if level 3 } \\ 0 & \text { if not } \end{array} \right. \right.
x3"{1 if level 40 if not x4"{1 if level 50 if not x _ { 3 } " \left\{ \begin{array} { l l } 1 & \text { if level } 4 \\ 0 & \text { if not } \end{array} \quad x _ { 4 } " \left\{ \begin{array} { l l } 1 & \text { if level } 5 \\ 0 & \text { if not } \end{array} \right. \right.
This model was fit to n=40n = 40 data points and the following result was obtained:
y^=14.5+3x14x2+10x3+8x4\hat { y } = 14.5 + 3 x _ { 1 } - 4 x _ { 2 } + 10 x _ { 3 } + 8 x _ { 4 } a. Use the least squares prediction equation to find the estimate of E(y)for each level of
the qualitative variable.
b. Specify the null and alternative hypothesis you would use to test whether E(y)is the
same for all levels of the independent variable.


Definitions:

Cash Budget

is a financial plan that estimates cash inflows and outflows over a specific period of time, often used for managing liquidity and ensuring financial stability.

Inflows And Outflows

Terms referring to the movement of money into and out of a business or account, representing income and expenses or investments and withdrawals, respectively.

Sales Budget

A sales budget estimates the amount of revenue a company expects to earn from sales over a specific period, serving as a planning and control tool for managing operations.

Direct Labor Cost

The total cost of workforce directly involved in the manufacturing of a product, including wages and salaries.

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