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SCENARIO 18-9
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 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 determination ( R2 yj.(All variables except j ) )of each of the 5 predictors are, respectively,0.0380,0.4376,0.0248,0.0188,and 0.0312.
The coefficient of multiple determination for the regression model using each of the 5 variables X j as the dependent variable and all other X variables as independent variables ( R2 j )are,respectively, 0.7461,0.5676,0.6764,0.8582,0.6632.
-Referring to Scenario 18-9,what is the value of the test statistic to determine whether MPG makes a significant contribution to the regression model in the presence of the other independent variables at a 5% level of significance?
Controlling Influence
Refers to the power exercised by an entity or individual that holds a majority of voting rights in another business, allowing significant influence over its operations and decisions.
Long-term Investments
Investments made by a company intended to be held for a period exceeding one year, often in bonds, stocks, or real estate.
Debt Investments-HTM
Investments in debt securities intended to be held to maturity, reflecting a long-term investment strategy for earning interest income.
Maturity
The due date on which a financial obligation must be repaid in full.
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