In a Comprehensive Road Test for New Car Models, One $y$

question 72

Essay

In a comprehensive road test for 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: $y$ = 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:
$\begin{array}{l|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENT'S T } & \text { P } \\\hline \text { CONSTANT } & 18.7171 & 0.63708 & 29.38 & 0.0000 \\\text { MAX } & -0.08365 & 0.00491 & -17.05 & 0.0000\end{array}$

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




CASES INCLUDED 129 MISSING CASES 0 $$\text { Find and interpret the estimate } \hat { \beta } 1 \text { in the printout above. }$$

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Definitions:

Sales Commission

A reward or payment made to a salesperson, typically calculated as a percentage of the sales they have generated.

Incentive Systems

Arrangements used by organizations to motivate and reward employees for achieving specific performance targets.

Industrial Buyers

Individuals or organizations that purchase goods or services for industrial use, manufacturing, or for resale to other consumers.

Productivity Measurement

The process of quantifying the efficiency and effectiveness of production.