A statistical program is recommended.

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.

In working further with this problem, statisticians suggested the use of the following curvilinear estimated regression equation.

ŷ = b₀ + b₁x + b₂x²

(a)

Develop an estimated regression equation for the data of the form

ŷ = b₀ + b₁x + b₂x².

(Round b₀ to the nearest integer and b₁ to two decimal places and b₂ to three decimal places.)ŷ =

(b)

Use α = 0.01 to test for a significant relationship.

State the null and alternative hypotheses.

H₀: b₁ = b₂ = 0
H_a: One or more of the parameters is not equal to zero.H₀: b₀ = b₁ = b₂ = 0
H_a: One or more of the parameters is not equal to zero.    H₀: One or more of the parameters is not equal to zero.
H_a: b₀ = b₁ = b₂ = 0H₀: One or more of the parameters is not equal to zero.
H_a: b₁ = b₂ = 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Reject H₀. We conclude that the relationship is significant.Do not reject H₀. We cannot conclude that the relationship is significant.    Reject H₀. We cannot conclude that the relationship is significant.Do not reject H₀. We conclude that the relationship is significant.

(c)

Base on the model predict the traffic flow in vehicles per hour at a speed of 38 miles per hour. (Round your answer to two decimal places.)

vehicles per hour

Consider the following data for two variables, x and y.

(a)Develop an estimated regression equation for the data of the form ŷ = b₀ + b₁x. (Round b₀ to two decimal places and b₁ to three decimal places.)

ŷ =____

(b)Develop an estimated regression equation for the data of the form ŷ = b₀ + b₁x + b₂x². (Round b₀ to two decimal places and b₁ to three decimal places and b₂ to four decimal places.)

ŷ =____

(c)Use the model from part (b) to predict the value of y when x = 20. (Round your answer to two decimal places.)____

**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.

In working further with this problem, statisticians suggested the use of the following curvilinear estimated regression equation.

ŷ = b₀ + b₁x + b₂x²

(a)Develop an estimated regression equation for the data of the form ŷ = b₀ + b₁x + b₂x². (Round b₀ to the nearest integer and b₁ to two decimal places and b₂ to three decimal places.)

ŷ =_____

Find the value of the test statistic. (Round your answer to two decimal places.)_____

Find the p-value. (Round your answer to three decimal places.)

p-value = ______

(c)Base on the model predict the traffic flow in vehicles per hour at a speed of 38 miles per hour. (Round your answer to two decimal places.)

______vehicles per hour

1. An oil tanker belonging to Oil Finders, Inc. runs aground and causes a massive oil spill that damages several miles of the Texas coastline. As a result, several public beaches are rendered unusable to the public. Riker and Picard are avid surfers who like to hit the waves as often as they can. Because of the oil spill, they will not be able to surf for at least six months. They file suit against Oil Finders, Inc. for nuisance. Will the court hear their suit? Defend your answer.

2. An oil tanker belonging to Oil Finders, Inc. runs aground and causes a massive oil spill that damages several miles of the Texas coastline. As a result, several public beaches are rendered unusable to the public. Riker and Picard make their living harvesting clams and oysters at the various beaches in the area and their business has been destroyed as a result of the oil spill. They file suit against Oil Finders, Inc. for nuisance. Will the court hear their suit? Defend your answer.

3.John and Kelsey live in a house in Missouri that they purchased for $250,000. The town has never had a garbage dump and the city government has spent millions of dollars over the years sending the town's trash to a dump located in a different part of the state. In order to save money, the town contracts with Mr. Barr, the president of a waste management company, to build and maintain a landfill at the edge of the town. Within six months, the landfill is operational. Eventually, as more and more of the town's trash gets dumped into the landfill, the residents of the town are subjected to the odor that the landfill gives off. The odor is not constant but, on windy days, it is noticeable. As a result, the house that John and Kelsey bought for $250,000 is reduced in value to $240,000. If John sues the town for nuisance, which of the following is most likely to occur?

Defend your answer/ Win, because his house's value has been reduced.

Win, because John moved to the neighborhood before the landfill opened.

Lose, because the odor is not constant. Lose, because benefits of the landfill outweigh the damage done to John.

(05.01 MC)

Suppose we select a simple random sample of size n = 250 from a large population with a proportion p of successes. Let p̂ be the proportion of successes in the sample. For which value of p is it appropriate to use the Normal approximation for the sampling distribution of p̂? (4 points)

(05.04 MC)

A parks and recreational board in Birch County is interested in estimating the proportion of its residents in favor of having more public parks in that county. A random sample of Birch County residents was selected. All the selected residents were asked, "Are you in favor of having more public parks in your county?" A 98% confidence interval for the proportion of residents in favor of having more public parks in that county was calculated to be 0.54 ± 0.03. Which of the following statements is correct? (4 points)

(05.05 MC)

The speed of a car, measured in miles per hour, was determined 10 times at random. The results are 22, 43, 35, 32, 41, 28, 29, 30, 37, and 43 miles per hour. Construct a 95% confidence interval for the mean speed of this vehicle. (4 points)

14.5 A consumer organization wants to develop a regression model to predict gasoline mileage (as measured by miles per gallon) based on the horsepower of the car’s engine and the weight of the car, in pounds. A sample of 50 recent car models was selected, with the results recorded in the file auto.xls.

                a. State the multiple regression equation.

                b.   Interpret the meaning of the slopes, b₁ and b₂, in this problem.

                c.   Explain why the regression coefficient, b₀, has no practical meaning in the context of this problem.

                d.   Predict the mean miles per gallon for cars that have 60 horsepower and weigh 2,000 pounds.

Show how to get all answers in Excel format

(Also how to solve on ti-84)

1.

Fuel efficiency. Computers in some vehicles calculate various quantities related to performance. One of these is the fuel efficiency, or gas mileage, usually expressed as miles per gallon (mpg). One of the authors of this book conducted an experiment with his 2006 Toyota Highlander Hybrid by randomly recording mpg readings shown on the vehicle computer while the car was set to 60 miles per hour by cruise control. Here are the mpg values from the experiment:

Sigma, σ, is unknown.

What is the standard error of the mean? (use 3 decimal places)

What is the 98% confidence interval for the mean mpg? [ mpg, mpg] (use 2 decimal places)

Purchasing a car is a difficult decision. Car prices are a function of many variables such as mileage, age, foreign or domestic manufacture and engine technology utilized. Develop and run the following multiple regression model:

1. Interpret the beta coefficient (slope)s of all slopes: mileage, age, dummy engine and dummy foreign
2. Interpret R squared value of the model and root mean squared error (RMSE)
3. Would mileage and age influence your decision based on the statistical output for this sample data?
4. Would the price of a car be raised if a car were of foreign make and used V6 engine technology?

What will the expected price of a car be in the lemon market if the age of a car was 8 years, with 9,000 miles on it, is of foreign make and with V6 engine?

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn’t keep any significant inventories of the specialized assets that he sells. Joe reported the following financial information for his business activities during year 0.
Determine the effect of each of the following transactions on the taxable business income. (Select "No Effect" from the dropdown if no change in the taxable business income.)

f. Joe hired a new sales representative as an employee and sent her to Dallas for a week to contact prospective out-of-state clients. Joe ended up reimbursing his employee $460 for airfare, $510 for lodging, $410 for meals, and $310 for entertainment (Joe provided adequate documentation to substantiate the business purpose for the meals and entertainment). Joe requires the employee to account for all expenditures in order to be reimbursed.

g. Joe uses his BMW (a personal auto) to travel to and from his residence to his factory. However, he switches to a business vehicle if he needs to travel after he reaches the factory. Last month, the business vehicle broke down and he was forced to use the BMW both to travel to and from the factory and to visit work sites. He drove 200 miles visiting work sites and 78 miles driving to and from the factory from his home. Joe uses the standard mileage rate to determine his auto-related business expenses. (Round your answer to whole number. Use standard mileage rate.)

h. Joe paid a visit to his parents in Dallas over the Christmas holidays. While he was in the city, Joe spent $130 to attend a half-day business symposium. Joe paid $360 for airfare, $114 for meals during the symposium, and $68 on cab fare to the symposium.

Determine if it is (Amount of deduction, Amount of income, or No effect for each and the dollar figure associated).

You are a car thief. You steal late-model cars in a major U.S. city and drive them across the border to sell them for an average price of $10,000. You are enrolled in Ms. Smith’s managerial accounting class and you want to know if crime, indeed, does pay. So you calculate your costs thus:

~ on average, you drive 2,000 miles from start to destination. Your gas cost over the past year has averaged $3.00 a gallon, and most of the cars you drive get about 10 miles to the gallon.

~ each trip averages about 5 days. Your average cost per day of food and lodging is $30. 3) tips and bribes cost you about another $120 per job.

~ your major other cost comes from the “paint and body work” you must have done at the beginning of the job – your buddy Slade Slick charges you $3,500 per “conversion.”   

~ you also incur a “hiding out” cost between jobs – you stay in motels in the U.S. that average about $50 a day and your food cost comes to around $20/day. You spend about 9 days between jobs in your hideout mode.

~ your only other cost is lawyers’ fees – in the last year, you had to pay a lawyer $125,000 to defend you against felony theft charges. You estimate that you will probably caught, on the average, of once a year.

QUESTION:

a)What is your breakeven point in number of cars?

b) How many cars can you steal in one year if you take no vacation time?

c) You want to know if you should keep stealing cars or whether you should go to work for your brother, Honest Abe, for $10/hour.

d) how much money will you make, on average, in a year?