Question 1
Suppose\(\style{font-family:Times New Roman;}{y_i=\beta_0+\beta_1x_i+E_i}\), where\(\style{font-family:Times New Roman;}{E_i\;\sim\;N(0,\sigma^2)}\). This is:
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a simple linear regression model.
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a deterministic model.
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a generalized linear model.
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a deterministic relationship.
Question 2
Ten used cars from a rental fleet are randomly selected. Each vehicle’s annual maintenance cost from the previous calendar year (y) is recorded as well as the vehicle’s current mileage (x). A simple linear regression is conducted on the data.
The regression equation is
Maint = 297 + 0.00636 Miles
Predictor Coef SE Coef T P
Constant 296.6 162.4 1.83 0.105
Miles 0.006357 0.003121 2.04 0.076
S = 279.775 R-Sq = 34.1% R-Sq(adj) = 25.9%
Analysis of Variance
Source DF SS MS F P
Regression 1 324727 324727 4.15 0.076
Residual Error 8 626192 78274
Total 9 950919
Conduct a test of hypothesis to see if there is sufficient evidence to conclude that used vehicles with 22,500 miles will have a mean annual maintenance cost that exceeds $400. Select the appropriate critical value (CV), test statistic (TS), and decision. (Use α = 0.05). (Given: Sxx= 803,667,7024 and\(\style{font-family:Times New Roman;}{\overline x}\)= $43,627.700.)
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CV = 1.8331; TS = 0.1415; fail to rejectH0
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CV = 1.8595; TS = 0.02611; fail to rejectH0
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CV = 1.8331; TS = 0.2986; fail to rejectH0
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CV = 1.8595; TS = 0.3589; fail to rejectH0
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