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

question 98

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 $\quad x =$ 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 TIME60
$\begin{array}{l|c|c|c|c}\text { PREDICTOR } & & & & \\\text { VARIABLES } & \text { COEFFICIENT } & \text { STD ERROR } & \text { STUDENTS T } & \mathrm{P} \\\hline \text { CONSTANT } & 18.7171 & 0.63708 & 29.38 & 0.0000 \\\text { MAX } & -0.08365 & 0.00491 & -17.05 & 0.0000\end{array}$


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

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

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) \(0 \%\)
• B) \(70 \%\)
• C) \(- 17 \%\)
• D) \(8 \%\)

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Definitions:

Accounting Profit

The net income a company reports on its financial statements, calculated as total revenues minus explicit costs of doing business.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Marginal Benefit

The additional benefit derived from producing one more unit of a good or service.

Accounting Profit

The total revenue of a business minus its explicit costs; essentially the net income reported on the financial statements.