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SCENARIO 15-5
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 171 different vehicle models were collected:
Accel Time: Acceleration time in sec.
Cargo Vol: Cargo volume in cu.ft.
HP: Horsepower
MPG: Miles per gallon
SUV: 1 if the vehicle model is an SUV with Coupe as the base when SUV and Sedan are both 0
Sedan: 1 if the vehicle model is a sedan with Coupe as the base when SUV and Sedan are both 0
The coefficient of multiple determination ( R 2j)for the regression model using each of the 5 variables X j as the dependent variable and all other X variables as independent variables are,respectively,
0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Scenario 15-5,what is the value of the variance inflationary factor of HP?
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset deviate from the mean.
Covariance
A measure of the degree to which two variables change together, indicating the direction of their linear relationship.
Crystal Ball
Metaphorically, a tool or method used to predict future events or outcomes, often based on analysis or expert knowledge.
Cumulative Net Profit
The aggregate profit that a business has generated over time, deducting all operational expenses, taxes, and costs.
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