STATISTICS F/BUSINESS+ECONOMICS-TEXT
13th Edition
ISBN: 9781305881884
Author: Anderson
Publisher: CENGAGE L
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Textbook Question
Chapter 16.1, Problem 5E
In working further with the problem of exercise 4, statisticians suggested the use of the following curvilinear estimated regression equation.
ŷ = b0 + b1x + b2x2
- a. Use the data of exercise 4 to estimate the parameters of this estimated regression equation.
- b. Use α = .01 to test for a significant relationship.
- c. Predict the traffic flow in vehicles per hour at a speed of 38 miles per hour.
4. A highway department is studying the relationship between traffic flow and speed. The following model has been hypothesized.
y = β0 + β1x + ε
where
y = traffic flow in vehicles per hour
x = vehicle speed in miles per hour
The following data were collected during rush hour for six highways leading out of the city.
| Traffic Flow (y) | Vehicle Speed (x) |
| 1256 | 35 |
| 1329 | 40 |
| 1226 | 30 |
| 1335 | 45 |
| 1349 | 50 |
| 1124 | 25 |
- a. Develop an estimated regression equation for the data.
- b. Use α = .01 to test for a significant relationship.
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The director of marketing at Vanguard Corporation believes that sales of the company's Bright Side laundry detergent (S) are related to Vanguard's own advertising expenditure (A), as well as the combined advertising expenditures of its three biggest rival detergents (R). The marketing director collects 36 weekly observations on S, A, and R to estimate the following multiple regression equation:
S = a + bA + cR
where S, A, and R are measured in dollars per week. Vanguard's marketing director is comfortable using parameter estimates that are statistically significant at the 10 percent level or better.
a. What sign does the marketing director expect a, b, and c to have?
b. Interpret the coefficeints a, b, and c.
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Chapter 16 Solutions
STATISTICS F/BUSINESS+ECONOMICS-TEXT
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