The manager of a fleet of identical trucks used monthly data to estimate this model:

where Y is gallons of fuel consumed (average value 71,000); X₁ is miles traveled (average value 80,000); and X₂ is average speed (average value 55 miles per hour).

a. In plain English, interpret the 0.20 coefficient of X₁.

b. In plain English, interpret the 1,000.0 coefficient of X₂.

c. Can we conclude from the fact that the coefficient of X₂ is much larger than the coefficient of X₁ that average speed is more important than the number of miles traveled in determining fuel consumption?

Transcribed Image Text:

Y = 0.0+ 0.20X +1,000.0X2