A naval base is considering modifying or adding to its fleet of 48 standard aircraft. The...
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A naval base is considering modifying or adding to its fleet of 48 standard aircraft. The final decision regarding the type and number of aircraft to be added depends on a comparison of cost versus effectiveness of the modified fleet. Consequently, the naval base would like to model the projected percentage increase y in fleet effectiveness by the end of the decade as a function of the cost x of modifying the fleet. A first proposal is the quadratic model E(y) = Bo + Bix + Pzx The data provided in the table were collected on 10 naval bases of similar size that recently expanded their fleets. NAVALBASE PERCENTAGE COST OF IMPROVEMENT AT MODIFYING FLEET BASE LOCATION END OF DECADE y x.millions of dollars 125 U.S. U.S. U.S. 18 32 160 80 37 162 110 90 U.S. U.S. Foreign Foreign Foreign Foreign Foreign 30 10 140 85 25 2 150 50 (a) Fit the quadratic model to the data. (b) Interpret the value of R on the printout. (c) Find the value of s and interpret it. (d) Perform a test of overall model adequacy. Use a = .05. (e) Is there sufficient evidence to conclude that the percentage improvement y increases more quickly for more costly fleet modifications than for less costly fleet modifications? Test with a = .05. (1) Now consider the complete second-order model E(y) = Bo + Bix1 + B2x + Bax2 + Beni2 where x = Cost of modifying the fleet 1 if U.S. base 0 if foreign base X2 = Fit the complete model to the data. Is there sufficient evidence to indicate that type of base (U.S. or foreign) is a useful predictor of per- centage improvement y? Test using a = 05. A naval base is considering modifying or adding to its fleet of 48 standard aircraft. The final decision regarding the type and number of aircraft to be added depends on a comparison of cost versus effectiveness of the modified fleet. Consequently, the naval base would like to model the projected percentage increase y in fleet effectiveness by the end of the decade as a function of the cost x of modifying the fleet. A first proposal is the quadratic model E(y) = Bo + Bix + Pzx The data provided in the table were collected on 10 naval bases of similar size that recently expanded their fleets. NAVALBASE PERCENTAGE COST OF IMPROVEMENT AT MODIFYING FLEET BASE LOCATION END OF DECADE y x.millions of dollars 125 U.S. U.S. U.S. 18 32 160 80 37 162 110 90 U.S. U.S. Foreign Foreign Foreign Foreign Foreign 30 10 140 85 25 2 150 50 (a) Fit the quadratic model to the data. (b) Interpret the value of R on the printout. (c) Find the value of s and interpret it. (d) Perform a test of overall model adequacy. Use a = .05. (e) Is there sufficient evidence to conclude that the percentage improvement y increases more quickly for more costly fleet modifications than for less costly fleet modifications? Test with a = .05. (1) Now consider the complete second-order model E(y) = Bo + Bix1 + B2x + Bax2 + Beni2 where x = Cost of modifying the fleet 1 if U.S. base 0 if foreign base X2 = Fit the complete model to the data. Is there sufficient evidence to indicate that type of base (U.S. or foreign) is a useful predictor of per- centage improvement y? Test using a = 05.
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Step 1 a Find the quadratic model for the given data Let y be the percentage improve... View the full answer
Related Book For
Managerial economics
ISBN: 978-1118041581
7th edition
Authors: william f. samuelson stephen g. marks
Posted Date:
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