TABLE 13-14 An Automotive Engineer Would Like to Be Able to Predict

question 249

Multiple Choice

TABLE 13-14
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 Table 13-14, 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

---

Definitions:

Debit

An accounting entry that increases assets or expenses or decreases liabilities, equity, or revenue.

Credit

The granting of a loan and the creation of debt; any form of deferred payment.

Normal Balance

The typical side (debit or credit) on which an account increases, depending on the type of account.

Debit Balance

A balance in a financial account where the total debits exceed the total credits, common in asset and expense accounts.