United Oil Company is attempting to develop a reasonably priced unleaded gasoline that will deliver higher gasoline
Question:
a. Discuss why the data plots given in the page margin indicate that the model y = β0 + β1x1 + β2x21 + β3x2 + β4x22 + ε might appropriately relate y to x1 and x2. If we fit this model to the data in the page margin, we find that the least squares point estimates of the model parameters and their associated p-values (given in parentheses) are b0 28.1589 (<.001), b1 = 3.3133 (<.001), b2 = – 1.4111 (<.001), b3 = 5.2752 (<.001), and b4 = – 1.3964 (<.001). Moreover, consider the mean mileage obtained by all gallons of the gasoline when it is made with one unit of RST and two units of XST (a combination that the data in the page margin indicates would maximize mean mileage). A point estimate of and a 95 percent confidence interval for this mean mileage are 35.0261 and [34.4997, 35.5525]. Using the above model, show how the point estimate is calculated.
b. If we add the independent variable x1x2 to the model in part a, we find that the p- value related to x1x2 is .9777. What does this imply?
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Related Book For
Essentials Of Business Statistics
ISBN: 9780078020537
5th Edition
Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or
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