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SCENARIO 14-16 What are the factors that determine the acceleration time (in sec.) from 0 to 60 miles per hour of a car? Data on the following variables for 30 different vehicle models were collected: Y (Accel Time): Acceleration time in sec. X₁ (Engine Size): c.c. X₂(Sedan): 1 if the vehicle model is a sedan and 0 otherwise The regression results using acceleration time as the dependent variable and the remaining variables as the independent variables are presented below.
The various residual plots are as shown below.
The coefficient of partial determinations
are 0.3301 and 0.0594 respectively. The coefficient of determination for the regression model using each of the 2 independent variables as the dependent variable and the other independent variable as independent variables
are, respectively, 0.0077 and 0.0077.
-Referring to Scenario 14-16, what is the value of the test statistic to determine whether being a sedan or not makes a significant contribution to the regression model in the presence of the other independent variable at a 5% level of significance?
Borrowing Rate
The interest rate that a financial institution charges a borrower for the use of money.
Principal
The original sum of money borrowed in a loan, or the amount of the loan that has yet to be repaid, excluding interest.
Annual Payments
Regular payments made yearly, often referring to the interest or dividends paid by bonds or stocks.
Compounded Annually
This term refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods, with the compounding occurring once per year.
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